Build, borrow, buy: the case for merger efficiencies.

Keywords: Merger; Acquisition; M&A; Efficiency; Productivity; Antitrust; Consumer Welfare; Competition; Neo-Brandeis; K21; L40 EN Merger Acquisition M&A Efficiency Productivity Antitrust Consumer Welfare Competition Neo-Brandeis K21 L40 242 246 5 08/11/23 20230701 NES 230701 I. INTRODUCTION Business growth, whether scaling up existing operations or adding new capabilities to better serve consumers through product improvements or integrated offerings, requires companies to add new assets and labour. They found that high-productivity firms tend to buy underperforming assets from low-productivity firms and make the acquired assets more productive after acquisition.[18] On an average, acquired power plants experienced a 4 per cent efficiency increase 5-8 months after acquisition. EMPIRICAL EVIDENCE OF MERGER EFFICIENCIES There is a wide body of research attempting to measure the effects of mergers on the performance of the acquiring and target firms. [Extracted from the article]