Tender Offers, Acquisitions, and Subsequent Performance in Manufacturing Firms

Abstract

The article analyzes the long-term financial performance trends of firms engaged in tender offers.The author presents a comparison of the results of firms engaged in tender offers with those obtained with firms that engaged in other forms of acquisition. A measurement of performance using an analysis of returns on common equity and total return to shareholders is presented. A discussion is presented about the general appropriateness and moral and ethical aspects of acquisition as a business strategy.