Research Highlights – July 2018

A new study from the University of Waterloo confirms that, on average, shareholder value and market share improve when companies merge.  The study, published in the journal Managerial and Decision Economics, also found that the merged company’s market share ended up being greater than the pre-merger market share of the two companies combined.

The increase in shareholder value post-merger may be chiefly attributable to improved efficiencies as opposed to market power.  And firms typically realize synergies from mergers w.....