Recent mergers and acquisitions in Malta : an analysis

Abstract

This paper evaluates the Merger and Acquisition (M&A) process undertaken by Maltese listed acquirers, with a further focus on the effectiveness of M&As in reaching their original objectives. The results obtained from interviews held with representatives of involved acquirers and stockbrokers showed that in a majority of acquisitions, the acquiring companies did not have a strategy to look for potential targets. The study identified a number of weaknesses in the M&A process undertaken by the acquiring companies. To this effect, it provides suggestions for changes to practice carried out by acquirers in M&A deals in order to achieve improved effectiveness. Some of the main recommendations include allocating more time to the acquisition, better understanding of the target and evaluating the feasibility of exerting managerial decisions post-acquisition. This paper, therefore, provides acquiring companies with valuable insight on how to increase their likelihood of success in M&As.