Proceedings of The 6th International Conference on Advanced Research in Management, Business and Finance
Year: 2023
DOI:
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The Upside Down World of Value Capture. Do Companies in Technology Sector Follow the Principles of Profitable Growth?
Dr. Veronika Vinogradova
ABSTRACT:
The paper investigates whether the strategic deals, which have been driving the technology sector over the last decade, can be considered value-creating and had a positive impact on the acquirers’ long-term financial performance. The results of the analysis show that overall, the acquiring companies could not achieve profitable growth and fully capture value and the benefits of M&A. The acquirers showed rather a deterioration in post-acquisition profitability, efficiency, and growth. The focus (international and industrial) was associated with the best results in terms of both, profitability and growth, while the largest increase in post-event growth rates was achieved by the companies from the emerging markets.
keywords: Growth strategy, Technology sector, Corporate M&A, Profitable growth, Shareholder value creation, Valuation