DOI: https://doi.org/10.18371/fcaptp.v4i27.154197

M&A FINANCIAL LEVERS IN MANAGEMENT OF BUSINESS VALUE

I. M. Riepina, V. Y. Vostriakova, N. M. Chukhraieva, M. S. Bril

Abstract


The article aims at generalizing the development trend of the M & A market by various sectors of the Ukrainian economy. The volatility of the business environment, the aggravation of competition, the instability of the financial sector of the economy lead to search for alternative strategies for the efficient management of the company value through which domestic enterprises could transform their activities by creating additional market value of the business. Technologically, mergers and acquisitions are associated with direct and indirect financial levers, the analysis of which affects the final management decision on corporate transformation. The assets of companies and their value, size of liabilities, total shareholder return before and after mergers and acquisitions are crucial in justifying the transaction. In this regard, the proposed strategies that lead to the formation of the company value, were grouped according to the objectives of their transformation. The authors have researched the influence of financial levers of mergers and acquisitions upon the choice of such strategies. The article calculates the efficiency indicators of mergers and acquisitions transactions, such as TSR and TBR. It also claims that for today the investment attractive spheres are those of agro-industry, telecommunications, banking sector, oil and gas industry, real estate and construction. They have high average values of total return on equity and overall profitability of business, which are significant financial leverage for mergers and acquisitions. Transactions with high-tech companies, as well as transport and infrastructure enterprises, are not yet widespread in Ukraine. The study made it possible to conclude that the mentioned sectors are highly potential for the economy carrying advanced technologies and business models.

Keywords


mergers and acquisitions; M&A market; M&A strategies; business value management; financial levers M&A.

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References


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Copyright (c) 2018 I. M. Riepina, V. Y. Vostriakova, N. M. Chukhraieva, M. S. Bril

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770