Econometric analysis of mergers from a company's point of view I am learning about financial analysis of mergers and acquisitions: most of the models are based on accounting principles and simple assumptions.
I wanted to delve deeper into more statistical/ econometric methods to analyse mergers from a company's point of view: how would profitability be affected, synergies, debt etc., what variables are usually taken into account etc. But I have no idea of how that is done (although I have studied econometrics before, I haven't studied it in this context).
I read an article by Christopher Rybak and Loren Smith titled &quot;the Use of Econometrics in Merger Reviews&quot; but this article is not from the company's point of view, it is from the regulator's point of view instead, focusing on the merger's impact on market competitiveness, anti-trust etc. They say that in this case, three things are usually used: Demand Estimation and Merger Simulation, Event Studies and Price-Concentration Studies and then goes on to explain them.
I wanted to know if similar to the regulator's point of view, there are also commonly used practices to analyse mergers from the company's point if view, and where can I learn about them
A good textbook for this sort of empirical research is Introductory Econometrics for Finance by Chris Brooks. That textbook helped me a lot when I was writing my thesis, which was actually on M&amp;A (if they improve financial ratios for firms). I know writing a thesis is not exactly the same as actual research but reading your question I think you could find it useful.