Value Recognition Index of M&A deals worldwide 2010-2017, by change in value

This statistic illustrates the value recognition index (VRI) of mergers and acquisitions of publicly listed companies worldwide between 2010 and 2017, by the change in share value. VRI is calculated by dividing the market capitalization (one week after the deal has been closed) by the acquirers market capitalization (the day prior to the announcement or rumor) plus the transaction price paid for the target company. VRI gives a good indication as to whether mergers and acquisitions have a positive effect on the share value of the new company created.

This statistic illustrates that approximately 34 percent of M&A deals have a positive effect on the valuation of the company after the deal is completed. It also shows that nearly 40 percent of deals saw a decrease in value of over negative ten percent.