Financial Analysis of M&A Transactions in the High-Tech Sector: Evidence from BATMMAAN Companies

This thesis addresses the economic consequences of M&A activity taken by some of the largest high-tech firms (Broadcom, Alphabet, Tesla, Meta, Microsoft, Amazon, Apple, and NVIDIA, also known as ‘BATMMAAN’) during the years 2014 to 2024. In increasingly volatile digital market environments, M&A has emerged as a salient strategic avenue for the expansion of technology-oriented capabilities, the redefinition of industry boundaries, and the continuation of dominant market positions. The study employs a dual methodological framework, including a firm level financial statement analysis of income statements and balance sheets, and the changes in goodwill and intangible assets; and a deal level analysis of purchase price allocation, quality of disclosure, and deal accounting, distinguishing private from public acquisitions. An event study is also included to assess cumulative abnormal returns (CARs) surrounding the announcement of public M&A activity, thus capturing a short-term market reaction. The results underscore notable disparities in transparency practices for public and private acquisitions. Private transactions are characterized by limited disclosure practices that create informational blind spots for investors and regulators. Goodwill is a material line on balance sheets across proposed acquisitions, though the amount of goodwill incurred and subsequent impairment patterns are vastly different across firms as well as transactions. Additionally, an important theme referenced is that growth from the acquisition value proposition is a critical element alongside organic growth. This observation produces meaningful considerations about competition in digital ecosystems and the potential for "killer acquisitions". From a capital market perspective, market reactions to public acquisitions display heterogeneous outcomes, reflecting differences in target type, disclosure, and payment structures. Overall, the study contributes to the literature on M&A in the high-tech sector by bridging accounting evidence, market-based outcomes, and policy implications.