Acquisition Premiums and Market Shocks: Firm-Level Evidence from Global M&A Transactions

Abstract

This thesis examines the determinants of acquisition premiums in 944 global M&A transactions from 2005 to 2024. Using multivariate regression, it analyzes how firm-specific financial factors, buyer type, transaction geography, and macroeconomic disruptions influence premium levels. The findings show a consistent negative relationship between deal size and premiums, while profitability metrics exhibit limited impact. No significant differences are found between financial and industrial buyers or between domestic and cross-border deals. Although macroeconomic crises do not systematically affect premiums, year-specific effects reveal elevated premiums in certain post-crisis periods. By incorporating a broader range of financial indicators than prior research, this study contributes new insights into how internal firm characteristics shape M&A valuation outcomes across market environments.