Hi all,

I’m currently working on a fintech product which is to design a post-merger analytical tool. And i have been reading a lot of papers lately and the main methodology used is to do regression analysis on financial ratios (eg, operating profit ratios, ROE, ROA, etc.) pre and post merger (sometimes 3 years before merger and 3 year after merger) to see whether there’s improvement on profitability and operation.

I can see this is a methodology widely accepted and used in many cases, but i feel like this is only applicable when the acquiring company only acquired a single company within a short period of time, so the pre and post- merger financial ratios can be indicative as there’s no interference. But if there are multiple acquisitions that take place within a short period of time, it will be hard to know which transaction actually contributes to the subsequent improvement (or otherwise deterioration) of those financial ratios, or the proportion of improvement (or deterioration) done by each transaction; and sometimes these mergers can be for different purposes. But in many real-life cases, it is fairly common to see this happen.

So i’m here wanting to know whether there is a way to distinguish the subsequent contributions made by each transaction. Or is there any way to single out the difference mde by one particular merger or acquisition?

Thank you guys and your help will be so much appreciated :)