Synergy as a factor of the efficiency of M&A agreements

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.
Materials 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.