Estimating the synergy effect and its relevance to corporate behavior -Analysis of Japanese companies-

Abstract

To keep up with rapid changes in the business environment, Japanese companies have requiredto conduct business transformation in recent years. In this paper, we classified companies by using FuzzyC Means, and estimated the synergy effect of multi-business companies based on that classification. Inaddition to this, we investigated the corporate behavior, especially when making a decision to sell a business,focusing on divestment through M&A.