El éxito de los procesos de fusión en el mercado de auditoría: el caso de PriceWaterhouseCoopers/The merger strategy within the audit market environment: The case of PriceWaterhouseCoopers

• Published in: Revista de contabilidad 2015-01, Vol.18 (1), p.55
• Main Authors: de Fuentes, Cristina, Benau, Maria Antonia Garcia, Martinez, Maria Consuelo Pucheta, Barbadillo, Emiliano Ruiz
• Format: Article
• Language: Spanish
• Subjects: Acquisitions & mergers; Audits; Big Five accounting firms; Competition; Growth rate; Market penetration; Market shares; Studies
• ISSN: 1138-4891

This study offers evidence about the outcome of the Price Waterhouse and Coopers & Lybrand merger. In particular, we have analysed whether the two objectives of the integration project were finally reached, i.e. to boost the growth of the revenues, and the market share of the new company. To that end, we have applied widely used methodology. The study covers the 1997-2003 period, including five years post-merger, an operation that took place in 1998. The findings show that Price Waterhouse and Coopers & Lybrand would have achieved a market share and growth rate in revenues lower than their most direct competitors, if the merger had not taken place, although the differences between them are not statistically significant. On the other hand, the merged firm achieved a growth rate and market share higher than their most direct rivals, with the differences between them being statistically significant. Thus, we can conclude that the merged company, PriceWaterhouseCoopers, has achieved a higher level audit market penetration than their direct competitors.