Title: Mergers and acquisitions synergies for US third-party logistics providers

Authors: Yen-Chun Jim Wu, Ming-Jen Cheng

Addresses: National Kaohsiung First University of Science and Technology, 1 University Road, Yenchao, Kaohsiung County 824, Taiwan. ' National Kaohsiung First University of Science and Technology, 1 University Road, Yenchao, Kaohsiung County 824, Taiwan

Abstract: This study adopts DEA, multiple discriminant analysis and cluster analysis to construct the Mergers and Acquisitions (M&A) model and evaluate influential factors by studying 20 Third-Party Logistic (TPL) providers in the US-based on the synergy theory. The M&A model can provide insightful information on the M&A decision. It is also found that important factors generally used in the past financial research on M&A do not exhibit significant influence, showing the primary key factor is to achieve operational synergy in M&A, not financial synergy in this study. This paper makes some recommendations that assessed the targets performance before M&A activity in order to improve the chance of successful growth for logistics firms.

Keywords: mergers; acquisitions; third party logistics; TPL; DEA; data envelopment analysis; synergy theory.

DOI: 10.1504/IJSOI.2006.011015

International Journal of Services Operations and Informatics, 2006 Vol.1 No.3, pp.253 - 272

Published online: 03 Oct 2006 *

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