Financial Synergy in Mergers and Acquisitions in Saudi Arabia

Autor: Basmah Al Qudaiby, Muhammad Rahatullah Khan
Jazyk: angličtina
Rok vydání: 2013
Předmět:
Zdroj: Finanţe: Provocările viitorului, Vol 1, Iss 15, Pp 181-192 (2013)
ISSN: 1583-3712
Popis: Businesses today consider mergers and acquisitions a new strategy for their company’s growth. Companies aim to grow through sales’ increase, assets purchase, profits’ accumulation and market share gains. The better way for achieving these targets is by getting into either a Merger or an Acquisition. As a matter of fact, growth through mergers and acquisitions has been a critical part of the success of many companies operating in the new economy. Mergers and Acquisitions are an important factor in building up market capitalization. Based on three detailed and in depth structured interviews with major Saudi Arabian banks it has been found that, Mergers motivated by economies of scale should be approached cautiously. Companies should also approach vertical mergers cautiously because it is often difficult to gain synergy through a vertical merger and firms should also seek out mergers which allow the firm to acquire specialized knowledge. It has also been found that the firms should look for mergers that increase market power and avoid unrelated or conglomerate mergers.
Databáze: OpenAIRE