Sectoral Analysis of Mergers and Acquisitions Activity of Newly Public Firms: The Case of Borsa Istanbul

Yıl 2016, Cilt: 4 Sayı: 2, 111 - 129, 01.04.2016

Uğur Çelikyurt

Öz

This paper studies the mergers and acquisitions M&As activity of newly public firms on Borsa Istanbul between 1990-2014 on a sectoral basis. Our analysis of the number of initial public offerings IPOs and the amount of their IPO proceeds shows that while a higher number of firms go public in the manufacturing sector, larger firms go public in the financial sector in terms of the proceeds raised in the IPO process. For manufacturing firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 17% of their market size for acquiring IPO firms and 59% of their market size for targeted IPO firms. For financial firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 10% of their market size for acquiring IPO firms and 12% of their market size for targeted IPO firms. Overall, we find that compared to financial firms, manufacturing firms are more active as targets in the post-IPO M&A process within the first five years after their IPOs and similarly active as acquirers.

Anahtar Kelimeler

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Sectoral Analysis of Mergers and Acquisitions Activity of Newly Public Firms: The Case of Borsa Istanbul

Öz

This paper studies the mergers and acquisitions M&As activity of newly public firms on Borsa Istanbul between 1990-2014 on a sectoral basis. Our analysis of the number of initial public offerings IPOs and the amount of their IPO proceeds shows that while a higher number of firms go public in the manufacturing sector, larger firms go public in the financial sector in terms of the proceeds raised in the IPO process. For manufacturing firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 17% of their market size for acquiring IPO firms and 59% of their market size for targeted IPO firms. For financial firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 10% of their market size for acquiring IPO firms and 12% of their market size for targeted IPO firms. Overall, we find that compared to financial firms, manufacturing firms are more active as targets in the post-IPO M&A process within the first five years after their IPOs and similarly active as acquirers

Anahtar Kelimeler

Initial Public Offerings, Mergers and Acquisitions, Borsa Istanbul, Manufacturing Sector, Financial Sector

Kaynakça

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