The effect of acquisitions on the performance of companies: case of Whirlpool’s acquisition of Indesit

Аннотация

Purpose: Article is devoted to the estimation and analysis of the effects of the acquisition of Indesit on the acquiring company − Whirlpool Discussion: In order to accomplish the objective of the article authors used two main performance evaluation approaches for M&A deals: stock price measurement and accounting-based method. In order to adjust these methods to the case of Whirlpool, the specifics of two companies and of the home appliance sector, in general, were taken into consideration. Results: Authors assessed the results of the deal pointing out positive and negative effects for the Whirlpool’s performance after the closure of the deal in the medium-term period.