M&A effectiveness assessment: empirical study

Daria A. Koroleva

Daria A. Koroleva Financial University under the Government of the Russian Federation

Keywords: mergers, M&A, ESG risks, M&A valuation, DCF valuation

Abstract

Importance: mergers and acquisitions became an efficient strategy for gaining competitive advantages in rapidly changing world. The process of M&A effectiveness assessment is noticeably challenging due to various factors, including non-financial factors, influence on the performance of merged companies. Thus, there is a necessity in development of financial analysis tools and its application to the ESG integration in the M&A effectiveness estimation. Purpose: аrticle is devoted to problems regarding the estimation of the M&A effectiveness taking into account material ESG risks and provide the recommendations for M&A deal effectiveness assessment. Research design: the study critically discusses valuation methods that could be used in assessing the fair value of target and acquirer and identifies the most suitable method for considered industry and companies and provides the M&A deal effectiveness assessment. Results: the paper provides the recommendations regarding the M&A effectiveness estimation process. Performed results in the empirical research highlight the necessity of ESG risks integration in the process of M&A effectiveness assessment.

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Author Biography

Daria A. Koroleva , Financial University under the Government of the Russian Federation

graduate student, Assist. Prof.

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