Do mergers create value? If so, who profits from this value?

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Do mergers create value? If so, who profits from this value?

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Do mergers create value? If so, who profits from this value?

Explanation & AnswerSolution by a verified expert

Explanation

Studies show that mergers do indeed create shareholder value, though also that the increase in wealth is predominantly in the value that is realized by target company shareholders, with almost none of it accruing to the shareholders of the acquiring companies.

Sample Response

Mergers have been shown over time to create wealth, with most of that wealth ending up in the hands of target company shareholders.

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