Efficiency of Mergers and Acquisitions: Analysis of Objectives, Benefits and Possible Risks

Abstract

The mergers and acquisitions (M&A) market is constantly attracting the attention of experts. These transactions are considered one of the most complex and risky steps that a company's management can take. And the larger the deal, the higher the stakes. Mergers and acquisitions seem to be the most unpredictable type of business project, since the opportunities that arise in this area are unexpected and ambiguous, and due to the fear of missing out on a rare opportunity, participants in the transactions often cannot calmly evaluate all the advantages and disadvantages. Therefore, it is worth being well prepared, it is worth stocking up on the necessary specialists in advance, forming a competent team, using high-quality tools and recommendations from professionals. Having some experience in their development, M&A transactions face new problems and set new tasks. The purpose of this article is to study the effectiveness of mergers and acquisitions, analyze the goals, benefits and possible risks, as well as potential mistakes and opportunities to increase the chances of success. The methods of consideration, comparison, analysis and deduction will be used. JEL: G14, G34