Mergers & Acquisitions. An Efficiency Evaluation in the Technology, Media and Telecommunications (TMT) sector

This bachelor thesis delves into estimation of the efficiency of mergers and acquisitions (M&A) within the Technology, Media and Telecommunications (TMT) industry focusing on financial performance indicators such as EBITDA, ROA, ROE and EPS after acquisitions. By studying a dataset of 102 M&A cases spanning from 2010 to 2021 across 12 countries the analysis utilizes robust econometric methods like ANOVA and multiple regression analyses to examine how acquisition characteristics influence M&A outcomes. The study uncovers variations in M&A outcomes based on different factors, for example, on where the acquisitions took place, and on purposes of an M&A deal. The econometric models reveal a relationship between acquisition cost and subsequent financial performance, that with the time goes, the M&As become more efficient, that higher prices are associated with lower EBITDA increase rate and other insights related to changes in financial indicators after M&A deals and corresponding influencing factors. Furthermore, an in depth case study of Disney`s acquisition of 21st Century Fox is integrated into the research. This case demonstrates the balance between integration and strategic alignment in determining the success of M&A endeavors particularly highlighting how external factors like the COVID 19 pandemic can impact post-acquisition performance. By combining data analysis with insights from real world examples like the case study, this research offers a nuanced understanding of the factors influencing M&A success in the dynamic TMT sector. The results provide insights for business strategy and investment choices underscoring the role of aligning context and strategy to enhance the impact of acquisitions. Keywords: Mergers and Acquisitions, Financial Performance, Econometric Analysis, Case Study, TMT Sector, Corporate Strategy, Influencing Factors, M&A Efficiency.