REASONS FOR MERGERS AND THEIR IMPACT ON COMPANIES

Abstract

Given the emphasis in recent years on reorganizing operations, as strategies for achieving the medium and long term objectives of the companies, this paper aims to enable a theoretical study on the subject of mergers between companies, by analyzing the recent literature regarding this subject, both national and international, focusing on mergers’ evolution in Romania, the reasons which determine their achievement as well as on outlining the state of knowledge regarding subsequent performance of the companies involved in these transactions.A need for further research on the topic of mergers’ performance has been identified, particularly on the medium and long term, as existing studies have not provided enough information in order to formulate a principle regarding the impact of mergers on a company’s performance.

Keywords

• Merger,
• Reasons for mergers
• Financial performance
• Impact on companies