This paper evaluates the Merger and Acquisition (M&A) process undertaken by Maltese listed acquirers, with a further focus on the effectiveness of M&As in reaching their original objectives. The results obtained from interviews held with representatives of involved acquirers and stockbrokers showed that in a majority of acquisitions, the acquiring companies did not have a strategy to look for potential targets. The study identified a number of weaknesses in the M&A process undertaken by the acquiring companies. To this effect, it provides suggestions for changes to practice carried out by acquirers in M&A deals in order to achieve improved effectiveness. Some of the main recommendations include allocating more time to the acquisition, better understanding of the target and evaluating the feasibility of exerting managerial decisions post-acquisition. This paper, therefore, provides acquiring companies with valuable insight on how to increase their likelihood of success in M&As.

This research paper carefully examines how companies listed on the Malta Stock Exchange (MSE), which undertook a merger or acquisition deal between 2007 and 2011, performed the Merger and Acquisition (M&A) process. The paper analyzes how the characteristics of the small Maltese market affected the way in which MSE listed acquiring companies involved themselves in M&As. Furthermore, this paper evaluates the effectiveness of M&As in reaching their original objectives.

The study provides relevant suggestions assisting acquirers in changing their practices and hence achieving improved effectiveness. Being the first known study of its kind in Malta, it is of particular relevance within the ambience of a small market. However, the results obtained are of interest to any acquiring company undergoing an acquisition deal and also to practitioners assisting acquirers in M&A.

Applied Finance Journal, Recent Mergers, Acquisitions, Malta, Merger and Acquisition (M&A), Malta Stock Exchange (MSE), Information Technology (IT), Post-Acquisition Audit, Organizational Learning.