Patent-driven M&A - an inside-out approach on pre- and post-acquisition operational performance

Abstract

The acquisition of technology entails one of the main knowledge gathering strategies of modern-day companies. This Work Project analyses the operational performance and the synergies in the acquisition of Osram Licht AG by ams AG. I find evidence of post acquisition operational performance deterioration on key financial indicators such as operational margin, operational asset turnover, return on invested capital and return on equity, at least in the short term. Even though this patent-driven acquisition generated a net synergy of EUR 2,648 million, non-negligible financial dyssynergies also seem to be present, particularly associated to higher WACC conditions.