IMPACT OF COMPANY'S SIZE ON TAKEOVER SUCCESS

Respecting the fact that vast number of M&As do not achieve planed synergies and results and that M&A success is affected by different organizational variables like management, strategy, structure, corporate culture, company size etc., the main aim of this paper is to analyze the impact of company's size on takeover success. Successful takeover is defined as takeover in which target company performs better in the period after the takeover than in the period before the takeover. Hypothesis according to which the smaller the relative ratio of the size of target company compared to the acquirer, the more successful is target company's performance after the takeover was tested and confirmed on the 43 companies that were acquired in the Republic of Croatia.