Planning Technique for Complex Economic Object’s Synergy at Mergers and Acquisitions

Levitskiy, Stanislav and Frunze, Igor (2014): Planning Technique for Complex Economic Object’s Synergy at Mergers and Acquisitions. Published in: International Journal of Economics, Commerce and Management , Vol. 2, No. 6 (15 June 2014): pp. 1-12.

Abstract

The paper reviews integration problems for complex economic objects aiming to achieve a synergy effect from complementary actions of their assets, which total value exceeds isolated functioning results. In the present times in Ukraine problems concerning assessment of synergy effect at M&A of companies are the new among examining objects and that is why need further development. It is shown that application of system approach to investigation the efficiency integration of economic objects at mergers and acquisitions with regards of process design peculiarities of managerial decisions allows maximum accurate analyzing the results of interaction of economic units within unified integrated structure. So, one of the main reasons to make a bargain on M&A is intention to obtain positive synergy effect because basing on management theory its appearance promotes competitiveness and efficiency increase of the company. According to carried out analysis of existing approaches to assessment of expected synergy effect mostly models offer to calculate one-off synergy effect. It is worth noting that different kinds of synergies can appear not just after combining, but with time, that requires further investigations. It has been proposed a planning mechanism developed on the base of conceptual description the function results for integrated formation, which is the key technique tool for mergers and acquisitions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Planning Technique, Mergers & Acquisitions, Integration, Complex Economic Object
• Subjects: D - Microeconomics > D6 - Welfare Economics > D60 - General; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure

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Levitskiy, S.I.; Frunze, I.A. & Mikhaylik, D.P. (2014). Assessment techniques for integration efficiency of economic objects. International Journal of Economics, Commerce and Management. Vol. 2, Is.2. Available at: http://ijecm.co.uk/wp-content/uploads/2014/02/222.pdf