INTERNATIONAL JOURNAL OF ENGINEERING MANAGEMENT AND
SOCIAL SCIENCES

The Impact of Mergers and Acquisitions on Enterprise Value (EV): A Comparative Study of Microsoft and LinkedIn

This study examines the impact of mergers and acquisitions on the Enterprise Value (EV) of selected Information Technology (IT) companies, with the objective of evaluating the role of mergers and acquisitions in enhancing firm value and shareholder wealth. Mergers and acquisitions have become an important strategic tool for achieving business expansion, operational efficiency, market competitiveness, and long-term value creation. The study covers a six-year period comprising five years before the merger or acquisition and five years after the merger or acquisition. Enterprise Value (EV) is assessed using key financial indicators, including market capitalization, total debt, cash and cash equivalents, and other relevant financial variables, to evaluate the overall value of firms before and after the merger or acquisition. The research is based on secondary data collected from the annual reports of the selected companies, company publications, stock exchange disclosures, and other published financial sources. The collected data are analysed using Enterprise Value analysis, comparative analysis, descriptive statistics, and a paired sample t-test to compare the Enterprise Value of firms during the pre-merger and post-merger periods. The findings are expected to provide insights into the effectiveness of mergers and acquisitions in enhancing firm value, financial strength, and long-term shareholder wealth.