Quantitative Evaluation of Synergy Effects and Value Creation Mechanisms in Cross-Industry Mergers and Acquisitions: A Coupled Analysis of Industrial Engineering Methods and Financial Performance

Abstract

The cross-industry mergers and acquisitions (M&As) are also becoming popular as a tool of resource integration and strategic transformation but the mechanism of value creation is not sufficiently understood. In this paper, the author creates a multi-level coupled model incorporating industrial engineering processes with financial performance assessment to assess synergies after merger. Through the segmentation of enterprise systems into production, service and management subsystems, the research will use process reengineering, resource optimization and efficiency measurement techniques to measure cost, revenue and operational synergies. Cross-industry M&A samples and multi-period Difference-in-Differences and Structural Equation Modeling are used in the research to determine if M&As increase firm value and determine the mediating effect of operational and financial synergies. The study also explores the moderating role of industry heterogeneity, intensity of integration, and managerial complexity, which can be empirically tested, to explain how synergy realization and value creation in cross-industry M&As occur.