Authors
Rodionov I.
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Degree
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Professor, Department of economics and corporate finance National Research University Higher School of Economics |
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E-mail
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irodionov@hse.ru |
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Location
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Moscow |
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Articles
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Synergy valuation and synergy structure analysis for internal M&A deals in Russia in 2006 – 2014M&A decisions are vital for long-term development of emerging market companies. Existing research
pays little attention to studying structure of synergy and valuation of synergy in M&A deals, initiated by
private companies. Therefore, there are no inclusive methods exist to analyze different components of
financial and operating synergy. This article aims to systematize existing literature about synergy and
validate theoretical model suitable for synergy valuation in M&A deals in Russia. We also test several
empirical hypotheses about synergy structure during growth and crisis periods on Russian M&A market.
In the introductory part of the article we discuss concept of synergy in M&A deals and types of
synergy. In the second part we review academic literature related to valuation of different components
of operating and financial synergy. In the third part we develop inclusive valuation method for five
components of synergy. We formulate hypotheses and discuss data sample in part four. In part five we
test hypotheses on empirical data using our model and discuss significant results. This article may be
useful for company management and investment analysis to estimate value of prospective M&A deals.
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