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Diversification and company sales efficiency: Synergy influence on business valuation

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  • Jiaxuan Wang
  • Samira Abdullayeva
  • Duc Sinh Hoang

Abstract

The purpose is to show the main methods of calculation and analysis of various organizations' indicators to demonstrate, using a practical example, the synergistic effect's significance and role in the diversification and a rise in sales when making M&A (mergers and acquisitions) transactions. The methods applied are mathematical formulas and various empirical and statistical data from various literature sources. The study's findings underscore the importance of understanding the synergistic effect of M&A. The research results can be valuable for corporate executives, investors, and business consultants involved in M&A.

Suggested Citation

  • Jiaxuan Wang & Samira Abdullayeva & Duc Sinh Hoang, 2024. "Diversification and company sales efficiency: Synergy influence on business valuation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 940-951, March.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:2:p:940-951
    DOI: 10.1002/mde.4040
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    References listed on IDEAS

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