What is the Bootstrap Effect? Merger & Acquisition-Activities and their Influence on Stock Prices

Language: English

Published by GRIN Verlag Apr 2020, 2020

3346145506 / 9783346145505

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This item is printed on demand - Print on Demand Titel. Neuware -Seminar paper from the year 2017 in the subject Business economics - Investment and Finance, grade: 1,7, The FOM University of Applied Sciences, Hamburg, language: English, abstract: This paper will examine the question of how M&A activities influence a company's stock price and earnings per share (EPS), especially if the bootstrap effect occurs In 2016, the global mergers and acquisitions (M&A) activities decreased by about 18 percent compared to 2015. Altogether, 17,369 deals with a value of 3.2 trillion (tn.) US-Dollars (USD) were performed. There are numerous reasons to invest and divest in inorganic growth. Organic growth has its limitations, thus acquiring competitors, growing vertically or horizontally as well as accessing new markets are strong motivators to do so. Growing a business is often linked with going public. The decision to be part of the stock market and to perform M&A influences an enterprise's value for various reasons. To approach these questions, the first chapter gives a general overview of reasons, motivators, risks and benefits of M&A. Thereafter, the influence of M&A on a company's shareholder value and EPS is examined. Then, the bootstrap effect is explained and subsequently illustrated by an exemplary M&A transaction. Afterwards the risks and benefits of bootstrapping and M&A are analysed to consider its usefulness and influence on the share price and EPS.GRIN Publishing GmbH, Waltherstraße 23, 80337 München 32 pp. Englisch.…

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Title
What is the Bootstrap Effect? Merger & Acquisition-Activities and their Influence on Stock Prices
Author
Florian Beyer
Publisher
GRIN Verlag Apr 2020
Publication year
2020
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
3346145506
ISBN 13
9783346145505
Item weight
62 grams
Dimensions
210x148x3 mm

buchversandmimpf2000

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