M&A: Who Gains?
Interactive

M&A: Who Gains?

Intuition Publishing
Updated Sep 24, 2020

The key motivation behind M&A activity is to increase the wealth of the shareholders in the acquiring company. However, the economic gain from the merger is typically split between the shareholders of the acquiring company and the target. Here we look at how positive net present value is generated for the acquiring company when the economic gain exceeds the cost and how the economic gain is split between both sets of shareholders.