--- title: "Mergers and Acquisitions in the Service Sector" authors: - name: "Ylhäinen, Ilkka" url: "https://www.etla.fi/henkilot/ylhainen-ilkka/" sameAs: - "https://orcid.org/0009-0009-1199-5780" - name: "Pajarinen, Mika" url: "https://www.etla.fi/henkilot/pajarinen-mika/" sameAs: - "https://orcid.org/0000-0001-9087-5991" - "https://scholar.google.com/citations?user=7sGKgwsAAAAJ" date_published: "2023-11-30" series: "ETLA Raportit - Reports" series_number: "143" issn: - "2323-2447" - "2323-2455" jel_codes: - "F23" - "F61" - "G34" - "L80" language: "fi" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-143.pdf" identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-143" abstract_translations: en: "We examined mergers and acquisitions in the service sector and the effects of the transition to foreign ownership. We analyzed firm-level data encompassing 1,243 service sector acquisitions that occurred from 2009–2018. The most foreign acquisitions occurred in the health and social services, business services, and trade; the largest shares were noted in health and social services, IT services, and communication. Larger firms with lower levels of cash flow and firms characterized by a growth-resource imbalance were most likely to be the targets of foreign acquisitions. After an acquisition, the target company’s equity ratio and profit before taxes decreased; however, effects on growth and employment remained limited." --- # Mergers and Acquisitions in the Service Sector **Published:** 2023-11-30 **Categories:** Rapporter **URL:** https://www.etla.fi/sv/publikationer/rapporter/mergers-and-acquisitions-in-the-service-sector/ #### Abstract We examined mergers and acquisitions in the service sector and the effects of the transition to foreign ownership. We analyzed firm-level data encompassing 1,243 service sector acquisitions that occurred from 2009–2018. The most foreign acquisitions occurred in the health and social services, business services, and trade; the largest shares were noted in health and social services, IT services, and communication. Larger firms with lower levels of cash flow and firms characterized by a growth-resource imbalance were most likely to be the targets of foreign acquisitions. After an acquisition, the target company’s equity ratio and profit before taxes decreased; however, effects on growth and employment remained limited. --- ## Additional Information **Issn:** 2323-2447, 2323-2455 (Pdf) **Jel:** F23, F61, G34, L80 **Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-143-kansi.jpg **Key Words:** Mergers and acquisitions, Service sector, Foreign ownership, Foreign company **Kieli:** fi **Kirjoittajat:** Ylhäinen, Ilkka - Pajarinen, Mika **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-143.pdf **Paivays:** 30.11.2023 **Saatavuus:** 2 **Sarja:** ETLA Raportit - Reports **Sarja Nro:** 143 **Sivuja:** 16 **Publication Research:** No 65352 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-143", "headline": "Mergers and Acquisitions in the Service Sector", "inLanguage": "fi", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2023-11-30T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Ylhäinen, Ilkka", "url": "https://www.etla.fi/henkilot/ylhainen-ilkka/", "sameAs": [ "https://orcid.org/0009-0009-1199-5780" ] }, { "@type": "Person", "name": "Pajarinen, Mika", "url": "https://www.etla.fi/henkilot/pajarinen-mika/", "sameAs": [ "https://orcid.org/0000-0001-9087-5991", "https://scholar.google.com/citations?user=7sGKgwsAAAAJ" ] } ], "abstract": "", "keywords": [ { "@type": "DefinedTerm", "name": "Mergers and acquisitions", "@language": "en" }, { "@type": "DefinedTerm", "name": "Service sector", "@language": "en" }, { "@type": "DefinedTerm", "name": "Foreign ownership", "@language": "en" }, { "@type": "DefinedTerm", "name": "Foreign company", "@language": "en" } ], "isPartOf": { "@type": "PublicationIssue", "issueNumber": "143", "isPartOf": { "@type": "Periodical", "name": "ETLA Raportit - Reports", "issn": [ "2323-2447", "2323-2455" ] } }, "mainEntityOfPage": "https://www.etla.fi/sv/publikationer/rapporter/mergers-and-acquisitions-in-the-service-sector/", "url": "https://www.etla.fi/sv/publikationer/rapporter/mergers-and-acquisitions-in-the-service-sector/", "hasPart": { "@type": "CreativeWork", "inLanguage": "en", "text": "We examined mergers and acquisitions in the service sector and the effects of the transition to foreign ownership. 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