Year of Graduation
The Impact of the Life Cycle Stages of Efficiency of M&A Deals in Emerging Capital Markets
Financial Markets and Financial Institutions
This paper issues the impact of the target company's life cycle of M&A deals performance on emerging capital markets (BRIC). For efficiency estimation of M&A deals profitability indicators of the acquirer company's shares and profitability of sales were used. The novelty of this paper can be described by previously unused determinant of efficiency of M&A deals - the target company's life cycle stages. During the research process literature review was conducted. Also regression models were built and then interpreted. After the regression analysis (depending on the country and industry affiliation of the participating companies) we revealed that the company at the life cycle stage «Maturity» is the most attractive for the M&A deals, from the point of view of the company life cycle stages.