Mergers & Acquisitions (M&A) are important strategic business options for corporations. Yet
the understanding of industry-specific drivers of M&A transactions is more than limited.
Characterized by highly fragmented markets cross-company production structures and increasing
international business scope the construction industry represents an attractive field of
research to address questions on M&A motives. Based on comprehensively selected datasets and
state-of-the-art empirical methods the study illustrates the motives the strategy and the
effects of M&A transaction within the construction industry. Overall the analyzed M&A
transactions tend to lead to an increase of corporate wealth. Important factors for a positive
development comprise the peculiarities of the construction industry the general market
conditions and the nature of many takeovers. Still the M&A transactions may also cause
significant value destruction and may even lead to a failure of a company if an inappropriate
strategy is applied.
