Abstract

This article is aimed at improving the processes of evaluation by enterprises of the agro-industrial complex of planned decisions on acquisitions and mergers. The work is based on the analysis of integration evaluation problems, known approaches to their solution, and the development of the conceptual framework for evaluating these transactions. The article offers a method developed by the authors to assess the effectiveness of merger processes. The proposed method for evaluating mergers is developed on the basis of assessing the change in the company’s potential after the merger. The assessment of potential changes resulting from the implementation of integration projects will allow assessing the economic impact of merger options, taking into account the environmental consequences for the territory. The proposed method is aimed at more accurate accounting of changes in the intangible assets of the combined company as a result of integration. Rationalizing the evaluation of the effectiveness of mergers will allow the owners of the evaluated companies to improve the quality of preparation of integration transactions and reduce the risks of making inefficient decisions.

Highlights

  • The relevance of the study is determined by the strategic nature, high significance of decisions on mergers and acquisitions of economic entities and the wide scale of integration processes at present time in Russia.The Russian economy has a number of systemic problems that make obstacles for the country to take a well-deserved share in total world production

  • The proposed method is aimed at more accurate accounting of changes in the intangible assets of the combined company as a result of integration

  • The use of such a universal indicator of the effectiveness of a merger of companies as a change in potential will allow taking into account the economic, and the environmental consequences for the territory from the proposed integration projects

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Summary

Introduction

The relevance of the study is determined by the strategic nature, high significance of decisions on mergers and acquisitions of economic entities and the wide scale of integration processes at present time in Russia. The Russian economy has a number of systemic problems that make obstacles for the country to take a well-deserved share in total world production. Russian agriculture has a significant potential and can become a source of development of vast territories of Russia [1]. The crisis phenomena of recent years have made it difficult for Russian companies to use relatively accessible and cheap foreign debt capital [2]. Mergers are often the only way to raise funds to refinance or support planned projects. This study is aimed at improving the efficiency of evaluating mergers for companies in the agro-industrial complex

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