SYNERGY AS A FACTOR OF THE EFFICIENCY OF M&A AGREEMENTS
Journal Title: Зовнішня торгівля: економіка, фінанси, право - Year 2016, Vol 3, Issue 86
Abstract
Background. In scientific discussions on the implementation of the integration processes one of the most complex and controversial is the question of assessing the effectiveness of mergers and acquisitions, which leads to a clash between often opposed points of view. Some authors believe integration is really an important source of business efficiency increasing, others argue that integration of the companies as a result of internal conflict of interests often reflects the imperious instincts of managers and leads to negative dynamics of indicators of efficiency. The aim of the article lies in the comprehensive study and systematization of knowledge on the issue of the essence, sources of initiation and assessment of synergetic effect in the integration processes for constructing of conceptual scheme of obtaining an overall synergetic effect in the implementation of the integration interaction, which will be the basis for the development of the methodology of determining its size. Material and methods. Theoretical and methodological basis of research are scientific works of representatives of different schools and directions of economic theory, modern scientific developments of domestic and foreign scientists on issues of synergy, the synergetic effect of their manifestation and measurement in integration processes. Methodological basis of the research was compiled by systematic and comprehensive approaches to the study of the synergistic effect in the integration processes. In this study we used the structural-logical method, comparative analysis, thus ensuring the validity of theoretical positions and arguments of conclusions. Results. In order to develop adequate domestic realities methodology for the evaluation of synergistic effect in the integration processes, it is necessary to rely on the appropriate conceptual basis and for that it is necessary to understand the basic definitions. The author examined the achievements of domestic and foreign economists on the question of definition of essence of definitions «synergy» and «synergetic effect», as the result of which the classification of the types of synergetic effect on different signs was systematized and expanded. It was determined that the most important criterion of efficiency of integration processes is the increasing of benefits of the company-integrator owners and the united business, and the main subjective purpose of any business activity is the obtaining and increasing of profit, therefore it was suggested to identify the types of synergetic effect on the basis of origin (source) of profit: operational, financial, managerial, marketing, investment, functional, and innovative. On the basis of this study the author developed a conceptual scheme for the overall synergistic effect obtaining in the integration processes, which is the basis for the development of the methodology of determining its size. The main factors affecting the synergetic effect on the macro and micro level were distinguished and it was offered to assess this influence by the method of analysis of hierarchies. Conclusion. Existing methods for determining the size of synergistic effect are based on the understanding by the authors of its economic nature and its sources. The most important criterion of integration processes efficiency is the increasing of benefits of the company-integrator owners and the united business, and the main subjective purpose of any business activity is the obtaining and increasing of profit, therefore it was suggested to identify the types of synergetic effect on the basis of origin (source) of profit: operational, financial, managerial, marketing, investment, functional, and innovative.
Authors and Affiliations
Tetiana GAMMA
Keywords
Related Articles
- EP ID EP185130
- DOI -
- Views 111
- Downloads 0
ADMINISTRATIVE ACTIVITIES TO PREVENT AND COMBAT CORRUPTION IN THE MILITARY SPHERE
Background. The issue of preventing and combating corruption in all spheres of modern Ukrainian society is becoming important, especially for the army currently performing military service and on the effectiveness of whi...
THE CONCEPT OF «SERVICE»: IN INTERNATIONAL AND NATIONAL LAW
Background. There are some problems of legal regulation of services. This is the ambiguity of the definition of the category «service». Analysis of recent research and publications. The works of Golina A. V., Dzera A. V....
UKRAINE IN FREE TRADE ZONE WITH THE EUROPEAN UNION
The first year of the DCFTA is analyzed, identifying the prospects and drawbacks in the main socio-economic areas of its implementation. The state of international trade relations between Ukraine and the EU is examined,...
DISPUTE SETTLEMENT WITH THE PARTICIPATION OF A JUDGE IN THE CIVIL PROCESS
Background. The new edition of the Civil Procedural Code of Ukraine, which came into force on January 15, 2017 (Section III, Chapter 4, Articles 201–205), instituted the «dispute Settlement with the Participation of a Ju...
LEGAL REGULATION OF STATE AID TO BUSINESS ENTITIES
Background. In terms of economic and social crisis as an important stabilizing factor is the active participation of the state to regulate socio-economic processes in social life by providing various types of assistance...