Factors Affecting Efficiency of M&A Deals

As for today, there exist many researches that describe and estimate influence of different factors on efficiency of M&A deals. However, most of them are hardly applicable into practice. Moreover, these factors do not provide understanding about whom to acquire or whom to merge with. Aim of this paper is to figure out factors that can be applied in advance of the deal, during the stage of choosing a partner. In order to do that, the following factors are estimated: motives for performing the deal, influence of industry of a company-acquirer, cross-nationality, performing the deal between companies of either the same or different industries, whether the deal is vertical or horizontal, and influence of paid price and market concentration. In order to show the whole picture, in this work I described factors and reasons for their choice, performed estimation on the basis of deals database, and showed results, limitations, and further perspectives for research.