MERGERS & ACQUISITIONS. A FINANCIAL ANALYSIS OF A BIG CASE STUDY IN EMERGING MARKETS DURING THE PANDEMIC

Abstract

This paper deals with the issue of Acquisitions and Mergers. More emphasis is placed on the approach of the term Acquisition, and in particular on a large and important acquisition of two companies listed on the Greek economy. As is known, the Greek stock market belongs to the emerging markets. The agreement and completion of the acquisition took place during the pandemic. This study is an in-depth research and financial analysis of the companies Singular Logic and Epsilon Net for the years 2011 to 2020. The two companies, Singular Logic and Epsilon Net, have agreed to acquire the former from the latter in 2020. An acquisition carried out with the partial separation of the acquired business until the beginning of 2021, and the result of this process was the newly established company Epsilon Singular Logic SA This newly established company is half-owned by Epsilon Net and Space Hellas. As far as the study of this particular work is concerned, a complete financial analysis is carried out before the acquisition of these two companies. Our analysis focuses on a longitudinal comparison with productivity, efficiency, cash flow, investment ratios, liquidity, the Altman bankruptcy model and finally the takeover evaluation models, between Epsilon Net and Singular Logic. This comparative study tries to highlight the financial course of the two companies with any financial problems that existed from the year 2011 to the year of the acquisition agreement 2020, i.e. before the completion of the split and acquisition of the economic entity Singular Logic.

Keywords: Mergers & Acquisitions, Financial Analysis.

JEL Classification: G21, G33, G34.