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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
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    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

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