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

International Journal of Economics, Commerce and Management. - Vol. 2, Issue 6, 2014

12 Pages Posted: 17 Jun 2014

See all articles by Stanislav Levytskyi

Stanislav Levytskyi

Zaporizhzhya Institute of Economics and Information Technologies

Igor Frunze

Donetsk National University

Date Written: April 15, 2014

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.

Keywords: Planning technique, mergers & acquisitions, integration, complex economic object

JEL Classification: D61, L22

Suggested Citation

Levytskyi, Stanislav and Frunze, Igor, Planning Technique for Complex Economic Object’s Synergy at Mergers and Acquisitions (April 15, 2014). International Journal of Economics, Commerce and Management. - Vol. 2, Issue 6, 2014, Available at SSRN: https://ssrn.com/abstract=2454006

Stanislav Levytskyi (Contact Author)

Zaporizhzhya Institute of Economics and Information Technologies ( email )

Kiyashko St., 16-B
Zaporizhzhia, 69041
Ukraine

HOME PAGE: http://www.zieit.edu.ua

Igor Frunze

Donetsk National University ( email )

Universitetskaya str., 24
Donetsk, 83001
Ukraine
380633994399 (Phone)

HOME PAGE: http://www.donnu.edu.ua

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