Though mergers and acquisitions can be daunting in a staggering economic climate, a new study shows that such boldness is rewarded, according to Reuters. Research released by Towers Perrin and London’s Cass Business School has shown that firms that made large business purchases outperformed the wider markets by 6.3 percent.
Companies that made repeat acquisitions outperformed the world index by 8.1 percent.
Though global M&A activity dropped by 40 percent in the first half of 2009—down to $941 billion—the authors of the study assert that continued synergy efforts are the right choice.
“Companies with M&A in mind should be emboldened by our analysis: fortune favors the brave,” wrote the authors. “Fears that M&A is riskier post-Lehman seem to be misplaced.”
The study covered 204 acquisition deals, beginning with Lehman Brother’s bankruptcy filing last September.