Creation of Value for Matured Companies through Mergers and Acquisitions : A Review of Literature

Mergers and acquisitions (M&As) are common place among large and matured companies. There is however a debate as to the extent to which M&As create value to the company. There is also controversy on whether managers or shareholders gain more from M&As. This article is a review of related literature and report on companies engaged in M&As in recent times. The aim of the study is to determine whether or not M&As create value for mature companies. The literature reviewed along with reports on companies' activities are the basis upon which value as well as value creation factors were determined. This research shows that with the right M&A strategies or combination of strategies along with appropriate timing, M&As have high potential of creating value to shareholders