Measuring the Performance of Acquisitions and Acquisition Programs

Scholars researching in the field of Mergers&Acquisitions use a variety of measures to determine acquisition success with more than ambiguous results. This thesis adds to this discussion from a practitioner''s perspective and generates two main findings: First, findings indicate that accounting-based measures and non-financial criteria are significantly more important than those related to the stock market. This contradicts most academic approaches that favor stock market-related measurement (in most cases using abnormal returns). Second, the thesis identifies companies that have pursued or are currently pursuing an acquisition program, defined as "the acquisition of several mutually related targets". Five of these companies are introduced in more detail, as are the characteristics of their respective acquisition program. Results show that acquisition programs have existed for quite a while. Due to their larger relative size, these programs have a more significant potential impact on the company s stock price and, as such, are more carefully watched by analysts and shareholders. Hence, stock market-oriented criteria seem to be more meaningful than for single acquisitions.