Value Creation Through External Growth Strategy - the Architecture of Successful Performance

This paper is concerned with the profitable external growth and proposes an empirical model outlining the major determinants of its success. The results of analysis of the unique sample of strategic growth acquisitions completed from 2000 to 2010 suggest that the success of transaction is determined not only by external factors but also by the pre-event fundamental performance of participating companies. Taken together they present the performance measures for a profitable sustainable growth of a firm with concern of corporate market control. Therefore, the study offers the guidelines and encourages executives to “lead for value”