University Researchers: M&As That Drive Efficiency Provide the Most Value

A study of mergers and acquisitions conducted by researchers at George Mason University and Iowa State University shows that companies get more value return from M&A deals that help drive efficiency, the Washington Business Journal reported Wednesday.

“What we heard over and over from executives and from financial institutions is buy an adjacent quantity, buy a capability you don’t have, buy a customer that you don’t have access to,” said Brett Josephson, an assistant professor of marketing at GMU’s Center for Government Contracting. “But we actually found the biggest bang for the buck was buying for efficiency, not buying for new access.”

Josephson said they studied more than 600 M&As and analyzed them against the movement of the companies’ share prices on and a day after a transaction’s announcement to determine which deals generated the most market return. They also interviewed federal contracting officials and corporate executives for the study.

You may also be interested in...


Nimbix Unveils High-Performance Computing Offerings for Gov’t Customers

Nimbix has announced availability of its high-performance computing services to support cloud platforms compliant with the Federal Risk and Authorization Management Program, International Traffic in Arms Regulations and other government-imposed security standards. The company said Tuesday its JARVICE XE and HyperHub platforms offer HPC for artificial intelligence and simulation uses in defense, aerospace, energy and health care industries.

Tutor Perini

Tutor Perini Subsidiary Awarded $67M for Defense, Homeland Security Infrastructure Projects

A Tutor Perini subsidiary has booked $66.9 million in two awards for construction efforts with the departments of Defense and Homeland Security. Perini Management Services Inc. will renovate U.S. Air Force Academy's Cadet Field House in Colorado and design and build a dormitory at the Glynco campus for DHS.

Intelligent Artifacts

Intelligent Artifacts to Launch R&D on Sensor Fusion Tech for USAF

New York-based artificial intelligence company Intelligent Artifacts has secured a contract of an undisclosed sum through the first phase of the Small Business Innovation Research program to explore and develop a sensor fusion technology for the U.S. Air Force.