Figure 1.
The decision tree begins with Node 0, where diversification direction divides into Horizontal, 53.3 per cent, 1805, and Conglomerate, 46.7 per cent, 1581, from a total of 3386 cases. The first split uses completed date, separating 2022 from 2019, 2020, 2021, and 2023. For 2019, 2020, 2021, and 2023, the next split uses acquirer sector, dividing Manufacturing and Mining, Utilities and Waste Services, Trade and Transportation, Finance and Management of Companies, Agriculture, Professional and Scientific Services, Real Estate, Leasing and Public Administration, Information, Other Services, Health Care and Social Assistance, and Construction. Manufacturing and Mining, Utilities and Waste Services, Trade and Transportation divide further by target size into very large and large companies, and medium and small companies. Finance and Management of Companies, Agriculture, Professional and Scientific Services, Real Estate, Leasing and Public Administration divide further by acquirer size into very large and large companies, and small and medium companies. For 2022, the next split uses deal type, separating acquisitions of 1 to 50 per cent, acquisitions of 51 to 99 per cent, acquisitions above 51 per cent, and acquisitions of 100 per cent. Each terminal node reports the percentage and count of Horizontal and Conglomerate diversification together with the total observations for that branch.CHAID I of acquisitions in CE
Source: Authors’ own work