Mergers and Acquisitions performance review on Logistics and Supply chain companies : Evidence from the United States market

Abstract

Mergers and Acquisitions (M&A) are a very important part of corporate strategies wordwide, especially within logistics and supply chain companies where efficiency and business economies of scale are key success factors. This master’s thesis examines both the short-term immediate market reactions and the long-term performance impacts of M&A in the logistics and supply chain industries, using a combination of event study and a regression analysis to assess the impacts. The target market was selected from publicly listed companies in the United States, with a dataset of 126 transactions covering the years 2013-2024. The company specific variables used include debt ratio, ESG ratings, company size, specified industries and asset turnover.

The short-term analysis found positive cumulative abnormal returns (CARs) on average on the announcement days of these M&A transactions, indicating positive market reactions for M&A in the logistics and supply chain industries. The narrowest event window [-1, +1] was the most significant of the time intervals used in the study. However, the long-term analysis revealed a dis-persion in the financial performance development for companies’ post-transaction. Company size and low debt are associated with better performance on average, if the performance is measured by return on assets (ROA). In addition, a company’s ESG rating is found to have a significant impact on posttransaction performance, which is explained by sustainable investments and good integration. The regression results highlight the importance of strategic fit and successful integration, especially within industries where supply chain efficiency is a key competitive factor.

In conclusion, it is found that corporate acquisitions can achieve positive results in both the short and the long term. The study brings new perspective to the M&A literature in the logistics and supply chain industry, which has not been studied so extensively. The results highlight the importance of strategic fit and successful integration. The study also provides recommendations for both the further academic research and strategic decisionmaking in companies regarding acquisition processes.