Authors
Mikhalchuk V.
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Degree
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Postgraduate, Department of economics and corporate finance National Research University Higher School of Economics |
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E-mail
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vitalmix@gmail.com |
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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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Market power effects after domestic Russian merger and acquisition dealsThis research develops an approach to analysis of market power effects after domestic Russian
mergers and acquisitions (M&A) and tests potential success factors for increasing market power
after M&A. The sample is based on the Mergermarket database and includes 171 domestic Russian
deals closed between January 2006 and September 2015.
This paper makes two primary contributions to the literature. First, this paper is related to the
recent research that investigates M&A in emerging markets. Our paper is unique in that we study
domestic Russian M&A based on long-term firm accounting data. This approach captures private
companies and small deals that make up the majority of the Russian M&A market. The second contribution
is the evaluation of market power effects after M&A both for the entire Russian M&A market
and for the separate industries.
The analysis shows that domestic Russian deals do not lead to significant increase in market
power. Only 49% of the deals are successful and, on average, they lead to 2,6% increase in EBIT
margin. The most successful industry is wholesale and retail where 68% of the deals are successful.
This article may be useful for company management to estimate value of prospective M&A deals
and for academic researchers interested in analysis of emerging markets M&As.
Read more...
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