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Synergy and Goodwill Controlling

Empirical Evidence on Determinants and Acquisition Performance

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Daniela Peters

As most acquisitions destroy shareholder value, this study examines the effect of synergy and goodwill controlling on acquisition success. Based on a sample of German, Austrian, and Swiss acquirer companies, a descriptive analysis presents design options for the M&A organization and related controlling tasks. Empirical analyses identify various determinants of synergy and goodwill controlling and reveal that acquisitions positively impact financial success in the short term and accounting-based success in the medium term. The results also indicate that synergy and goodwill controlling influence internal and external measures of acquisition success in different ways. Thus, the findings do not only entail implications for acquirers but also for investors, standard setters, and academics.

Mergers and Acquisitions – Synergy controlling – Goodwill controlling – Link between synergies and goodwill – Value-based management of acquisitions – Investment controlling/management – M&A project organization – Monitoring of acquisition performance – survey research – short-term event study – long-term event study – capital market effects – accounting consequences