The role of mergers and acquisitions in the economy

Abstract

Companies often resort to mergers and acquisitions. They can indicate both the growth of the company and attempts to save part of the business. At a certain stage in the development of the economy, almost every organization is faced with the need to reorganize the business due to changes in macroeconomic conditions, or with the need to maintain corporate control. In a rapidly developing market that requires business sustainability, continuous improvement of performance, cost reduction, the problem of reorganization of companies is complex and difficult. Mergers and acquisitions are one of the mechanisms for the redistribution of property, which means that they directly affect who controls the national economy and how it will function in the future. The purpose of this article is to analyze mergers and acquisitions, the impact of the mergers and acquisitions on the activities of companies, as well as to determine the role and impact of these transactions on the economy. During the writing of the article, various research methods were used, such as methods of monographic abstract-logical analysis, method of comparative analysis and deductive method. CZU: 005.591.452:334.758.6. JEL: G1, G34. DOI: https://doi.org/10.53486/icspm2023.31