engleski

Financial Characteristics of Acquired Companies – Case of Croatia

The main motivation for this paper is the increased number of mergers and acquisitions in Croatian emerging economy during the last few years. Therefore, the paper is focused on exploration of financial characteristics of acquired Croatian companies. The sample consists of data for 54 (in 2007) and 50 (in 2008) acquired listed and privately held companies. In order to obtain insight into the financial characteristics of acquired companies we have compared acquired with nonacquired companies, where the sample of nonacquired companies was randomly selected from the same industry and year population. Univariate analysis for the 2007 revealed that the average size of acquired companies was larger than the average size of nonaquired companies. The analysis for 2008 also confirmed that the average size of acquired companies was larger than the average size of nonaquired companies, while acquired companies had significantly lower profitability (ROA). Multivariate analysis based on logistic regression resulted with finding that financial characteristics of acquired and nonacquired companies do differ, particularly in terms of size and activity (2007). The empirical findings for 2008 reveal that the likelihood of being acquired is related to the following variables: EBITDA margin, activity, size, liquidity and leverage.

Financial Characteristics; Acquired Companies

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