Companies, to survive and have a strong competitive position on the market, need to constantly invest in a future expand and growth of the company. The most common example of how companies can develop its activities by using external growth strategy are business combinations transactions. In such a way, firms can in a fast and cost-efficient way reach their objectives. However, there are many deals drivers for mergers and acquisition, which may differ across different industries. This study examines business combinations deals rationales across three industries: banking, automotive and heavy industry. Scrutiny of the research problem is based on analysis of three different case studies, each of them representing one of the industries stated above. This paper dissects following transactions: Intesa Sanpaolo S.p.A. and Ubi Banca S.p.A., Alstom SA and Bombardier Transportation GmbH, FCA Group and Groupe PSA. Preceding that, exhaustive analysis of IFRS 3 is provide, to comprehend how to account for business combinations under International Financial Reporting Standards. The results shows that deal drivers across different industries have more similarities, than differences. It has been proved that in all three cases, deals have occurred by the willing of becoming an industry leader or strengthen a leadership position, and by eager to value creation for its stakeholders. In addition, further similarities were found between automotive and machinery industry deal drivers. Specifically, need for creation greener and environment friendly products, which nowadays are key growth driver for many companies. Another aspect found as a deal rationale was to increase worldwide reach and expanding the products portfolio. These results suggest that companies, by entering in mergers and acquisition transactions, want growth and development of the company to survive in “business world” and use an external growth strategy to become a pioneer on the market.
Companies, to survive and have a strong competitive position on the market, need to constantly invest in a future expand and growth of the company. The most common example of how companies can develop its activities by using external growth strategy are business combinations transactions. In such a way, firms can in a fast and cost-efficient way reach their objectives. However, there are many deals drivers for mergers and acquisition, which may differ across different industries. This study examines business combinations deals rationales across three industries: banking, automotive and heavy industry. Scrutiny of the research problem is based on analysis of three different case studies, each of them representing one of the industries stated above. This paper dissects following transactions: Intesa Sanpaolo S.p.A. and Ubi Banca S.p.A., Alstom SA and Bombardier Transportation GmbH, FCA Group and Groupe PSA. Preceding that, exhaustive analysis of IFRS 3 is provide, to comprehend how to account for business combinations under International Financial Reporting Standards. The results shows that deal drivers across different industries have more similarities, than differences. It has been proved that in all three cases, deals have occurred by the willing of becoming an industry leader or strengthen a leadership position, and by eager to value creation for its stakeholders. In addition, further similarities were found between automotive and machinery industry deal drivers. Specifically, need for creation greener and environment friendly products, which nowadays are key growth driver for many companies. Another aspect found as a deal rationale was to increase worldwide reach and expanding the products portfolio. These results suggest that companies, by entering in mergers and acquisition transactions, want growth and development of the company to survive in “business world” and use an external growth strategy to become a pioneer on the market.
Business Combinations under IFRS. Overview of the drivers of Business Combinations across different industries.
KLIS, IZABELA KATARZYNA
2020/2021
Abstract
Companies, to survive and have a strong competitive position on the market, need to constantly invest in a future expand and growth of the company. The most common example of how companies can develop its activities by using external growth strategy are business combinations transactions. In such a way, firms can in a fast and cost-efficient way reach their objectives. However, there are many deals drivers for mergers and acquisition, which may differ across different industries. This study examines business combinations deals rationales across three industries: banking, automotive and heavy industry. Scrutiny of the research problem is based on analysis of three different case studies, each of them representing one of the industries stated above. This paper dissects following transactions: Intesa Sanpaolo S.p.A. and Ubi Banca S.p.A., Alstom SA and Bombardier Transportation GmbH, FCA Group and Groupe PSA. Preceding that, exhaustive analysis of IFRS 3 is provide, to comprehend how to account for business combinations under International Financial Reporting Standards. The results shows that deal drivers across different industries have more similarities, than differences. It has been proved that in all three cases, deals have occurred by the willing of becoming an industry leader or strengthen a leadership position, and by eager to value creation for its stakeholders. In addition, further similarities were found between automotive and machinery industry deal drivers. Specifically, need for creation greener and environment friendly products, which nowadays are key growth driver for many companies. Another aspect found as a deal rationale was to increase worldwide reach and expanding the products portfolio. These results suggest that companies, by entering in mergers and acquisition transactions, want growth and development of the company to survive in “business world” and use an external growth strategy to become a pioneer on the market.| File | Dimensione | Formato | |
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https://hdl.handle.net/20.500.14240/32063