Mergers and Acquisitions of Leasing Companies

In this paper, an attempt is made to evaluate the effectiveness of M&A in the leasing industry, to establish the impact of transactions on the operational efficiency of the combined companies, to highlight the determinants of the success of transactions. The purpose of this work: Assessment of success factors in M&A transactions involving leasing companies. The research methodology consists in analyzing public information about transactions, comparing financial results before and after using econometric analysis methods, namely constructing regression models. One of the key motives for concluding a deal is to obtain certain competitive advantages or a synergy effect that are inaccessible or difficult to implement separately by companies. In other words, when combined, companies acquire economic or strategic resources that will expand their influence in the current market, facilitate entry into new ones, or lead to the achievement of alternative goals that companies have. However, according to statistics, most of these transactions do not lead to the planned synergistic effect. Most of the existing research studies the success of M&A in a generalized form, without separating transactions by industry and, accordingly, not taking into account the characteristics of industries. Thus, the conclusions of the studies are often contradictory and do not give an unambiguous answer to the question in this paper: “Do M&A transactions in the leasing industry increase the operational efficiency of companies?” Based on the above, the question remains open, which justifies the relevance of the current work. As a result of the study, it was found that the success of M&A transactions in the leasing industry is significantly affected by the following factors: the contribution of the target company's leasing portfolio to the acquirer’s portfolio, leaving of top managers in the first 12 months after the conclusion of the transaction. The first factor has a positive correlation with the operational efficiency of the company after the transaction, the second has a negative impact on the effectiveness of M&A.