M&A AND VALUE CREATION. A SWOT ANALYSIS

Most literature research argues that Merger &Acquisitions is a strategy by which companies gain access to new resources, increase revenues, efficiency and cost reducing to create value. Many multinational companies around the world today are the result of M&A between two or more companies. As strategy, every deal should realize, positive results in terms of value. Instead, recent studies have found a high failure rate, regardless of sector, country, or historical phase. The debate in literature about M&A phenomena is extensive and authoritative: this book fits within this discussion with some peculiarities by focusing on the Strengths and Opportunities and Weaknesses and Threats of a successful deal, so that it has a real strategic value. In particular, Chapter 1 is dedicated to the introduction the strategic relevance of M&As and its key factors. In connection with this, in the second chapter, the aim is to deepen the study of the key factors that the acquisition team has to tune together in the complex evaluation process that a successful deal requires. Using the strategic tool, SWOT analysis, we study the different Strengths, Weaknesses, Opportunities and Threats always under the value creation perspective. Between the Strengths, a particular focus is on the evaluation process, with all the implications in terms of synergies evaluation and financial structure management. Chapter 3 opens a window on some “serial acquirers” that consider M&A the strategic base of their wealth creation mission. With the presentation of the case studies, the aim is to draw the attention on the strategic dimension of companies’ activities. In the Appendix 1 and 2, the debate moves to the lens of practitioners, with a focus on the normative and tax determinants. Appendix 1, Francesco Greggio, as advisor, gives a real practitioners vision on the limits and opportunities in Italian low for merger and acquisition strategies. In the Appendix 2, Gino Reolon, Colonel of Guardia di Finanza (fiscal police), highlights that merger and acquisition are operations intrinsically linked to international tax planning.