Acquisition Value Analysis Acquisitions & Mergers in the Czech Republic

The study deals with assessing the success of mergers & acquisitions. First, it reviews current approaches to assessing the success of mergers & acquisitions. Next, a method Acquisition Value Analysis, is presented. Acquisition Value Analysis may be used for evaluating the financial results of participating companies in the medium term; it measures the dynamics of profits/ losses reported regarding individual stakeholders: owners, creditors, employees. By applying this method, the mergers & acquisitions realised in the Czech Republic in the period 2007 - 2010 were analysed. Primarily, owners of target companies were those who prospered most whereas other stakeholders - creditors and employees - experienced losses. All interest groups - owners, employees and creditors - were reported as prospering in the medium term, especially those related to the firms that acted as acquirers.