Mergers . Acquisitions

Bachelor Thesis from the year 2011 in the subject Business economics - Investment and Finance, grade: B/1,7, , language: English, abstract: Today, companies need to constantly expand their business to stay ahead of the severecompetition. As competition grows more intense, it makes sense to join forces or simplyacquire the rival to provide the most diverse service and to reach even the last customer.But is it really only about the need for efficiency to merge and acquire competitors? Aremanagers and investors right about their hope, that every new acquisition or merger offersmore control over the market? Or are they themselves pushed into these promising expectations?This research focuses on how social behavior influences value creation in mergers andacquisitions. Throughout history, waves have been observed that reflect the excessive hypefor perennial need of growth. Growth by acquisitions and mergers is seen as key element tocreate value by investors and managers. However, reality looks different. This researchfocuses on a two step approach by first describing underlying social catalysts that amplifythe trend towards value creation in mergers and acquisitions. Secondly, to verify the investigationof social behavior, the results are matched to a financial approach to detect whetherthe transaction price justifies the current value and possible synergies or whether valueis destroyed.A case study was conducted of Boss Media AB, a software company situated in the onlinegaming ind...