IDEAS home Printed from https://ideas.repec.org/a/rom/rmcimn/v21y2020i4p592-602.html
   My bibliography  Save this article

The Sources of Revenue Synergies in Mergers & Acquisitions

Author

Listed:
  • Violeta SACUI

    (West University of Timisoara, Faculty of Economics and Business Administration)

  • Madalina Dumitrita MATICIUC

    (West University of Timisoara, Faculty of Economics and Business Administration)

Abstract

Mergers & Acquisitions (M&A) have become in today’s modern business environment an important tool used by companies for achieving the growth and creation the value for shareholders. Creation the synergies in the M&A process is one of the most important reasons that stands at the base of the acquisition decisions of the companies. Many M&A transactions are justified by the amount of projected synergies. In this paper, we propose to clarify the sources of revenue synergies in horizontal mergers. Revenue synergies are, theoretically, developed based on the resource-based theory. Combining complementary resources can help firms gain strategic advantage and increase their revenues. We have tried to answer to the questions like: what kind of complementary resources can be combined by companies for obtaining the revenue synergies; what are the modalities in which the combination of these types of complementary resources can generate revenue synergies.

Suggested Citation

  • Violeta SACUI & Madalina Dumitrita MATICIUC, 2020. "The Sources of Revenue Synergies in Mergers & Acquisitions," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 21(4), pages 592-602, October.
    • Handle: RePEc:rom:rmcimn:v:21:y:2020:i:4:p:592-602
    as

    Download full text from publisher

    File URL: https://www.rmci.ase.ro/no21vol4/13.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hitt, Michael A. & Harrison, Jeffrey S. & Ireland, R. Duane, 2001. "Mergers and Acquisitions: A Guide to Creating Value for Stakeholders," OUP Catalogue, Oxford University Press, number 9780195112856.
    2. Laurence Capron & Will Mitchell & Anand Swaminathan, 2001. "Asset divestiture following horizontal acquisitions: a dynamic view," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 817-844, September.
    3. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    4. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    5. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    6. Vithala R. Rao & Vijay Mahajan & Nikhil P. Varaiya, 1991. "A Balance Model for Evaluating Firms for Acquisition," Management Science, INFORMS, vol. 37(3), pages 331-349, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zaheer, Akbar & Castaner, Xavier & Souder, David, 2006. "To integrate or not to integrate ? complementarity, similarity, and acquisition value creation," HEC Research Papers Series 814, HEC Paris.
    2. Adrian Lüthge, 2020. "The concept of relatedness in diversification research: review and synthesis," Review of Managerial Science, Springer, vol. 14(1), pages 1-35, February.
    3. Evan Rawley & Timothy S. Simcoe, 2010. "Diversification, Diseconomies of Scope, and Vertical Contracting: Evidence from the Taxicab Industry," Management Science, INFORMS, vol. 56(9), pages 1534-1550, September.
    4. Felipe A. Csaszar & Nicolaj Siggelkow, 2010. "How Much to Copy? Determinants of Effective Imitation Breadth," Organization Science, INFORMS, vol. 21(3), pages 661-676, June.
    5. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    6. Drewianka, Scott, 2006. "A generalized model of commitment," Mathematical Social Sciences, Elsevier, vol. 52(3), pages 233-251, December.
    7. Zand, Fardad & Van Beers, Cees & Van Leeuwen, George, 2011. "Information technology, organizational change and firm productivity: A panel study of complementarity effects and clustering patterns in Manufacturing and Services," MPRA Paper 46469, University Library of Munich, Germany.
    8. Giuliana Battisti & Heinz Hollenstein & Paul Stoneman & Martin Woerter, 2007. "Inter And Intra Firm Diffusion Of Ict In The United Kingdom (Uk) And Switzerland (Ch) An Internationally Comparative Study Based On Firm-Level Data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 669-687.
    9. Müller, Bettina, 2008. "Matching of Individuals for Start-Ups: A Test of the O-Ring Theory," ZEW Discussion Papers 08-112, ZEW - Leibniz Centre for European Economic Research.
    10. Alcino Azevedo & Dean Paxson, 2018. "Rivalry and uncertainty in complementary investments with dynamic market sharing," Annals of Operations Research, Springer, vol. 271(2), pages 319-355, December.
    11. Furlan, Andrea & Dal Pont, Giorgia & Vinelli, Andrea, 2011. "On the complementarity between internal and external just-in-time bundles to build and sustain high performance manufacturing," International Journal of Production Economics, Elsevier, vol. 133(2), pages 489-495, October.
    12. ATM Adnan, 2018. "Home vs. Cross-Border Takeovers: Is There Any Difference in Investor Perception?," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2018(2), pages 59-84.
    13. Bryan Hong & Lorenz Kueng & Mu-Jeung Yang, 2015. "Estimating Management Practice Complementarity between Decentralization and Performance Pay," NBER Working Papers 20845, National Bureau of Economic Research, Inc.
    14. Sun-Moon Jung & Jae Yong Shin, 2022. "Social Performance Incentives in Mission-Driven Firms," Management Science, INFORMS, vol. 68(10), pages 7631-7657, October.
    15. repec:ipg:wpaper:2014-488 is not listed on IDEAS
    16. Mazzanti, Massimiliano & Mancinelli, Susanna, 2007. "SME Performance, Innovation and Networking Evidence on Complementarities for a Local Economic System," Knowledge, Technology, Human Capital Working Papers 9554, Fondazione Eni Enrico Mattei (FEEM).
    17. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    18. Hennessy, David A., 1997. "The short- and long-run comparative statics of uncertainty," Economics Letters, Elsevier, vol. 55(3), pages 347-353, September.
    19. Phu Nguyen-Van & Tuyen Tiet & Quoc Tran-Nam, 2024. "Synergy in environmental compliance, innovation and export on SMEs' growth," Working Papers hal-04441426, HAL.
    20. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    21. Annika Campaner & John S. Heywood & Uwe Jirjahn, 2022. "Flexible work organization and employer provided training: Evidence from German linked employer‐employee data," Kyklos, Wiley Blackwell, vol. 75(1), pages 3-29, February.

    More about this item

    Keywords

    synergy; revenue; acquisition; company; resource; combination; sales; value.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:rmcimn:v:21:y:2020:i:4:p:592-602. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marian Nastase (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.