Original Paper

Review of Managerial Science

, Volume 3, Issue 2, pp 75-116

First online:

Do synergies exist in related acquisitions? A meta-analysis of acquisition studies

  • Fabian HombergAffiliated withIOU Institute for Organization and Administrative Science, University of Zurich Email author 
  • , Katja RostAffiliated withIOU Institute for Organization and Administrative Science, University of Zurich
  • , Margit OsterlohAffiliated withIOU Institute for Organization and Administrative Science, University of ZurichCREMA, Center for Research in Economics, Management and the Arts

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Abstract

Mergers and acquisitions (M&A) aim to increase the wealth of shareholders of the acquiring company, in particular by creating synergies. It is often assumed that relatedness is a source of synergies. Our study distinguishes between business, cultural, technological, and size relatedness. It discusses the reasons why these different forms of relatedness can lead to an acquisition success and we conduct a meta-analysis of 67 prior M&A studies. Results indicate that positive effects can be expected under specific conditions only and have a limited overall impact on acquisition success. A moderator analysis finds that synergies stemming from relatedness depend on industry-, country-, and investor-characteristics.

Keywords

Mergers and acquisitions Meta-analysis Business relatedness Size relatedness Technological relatedness Cultural relatedness Synergies

JEL Classification

G34 M19