Abstract

This research is aimed at improving the efficiency of evaluating mergers and acquisitions for companies in the agro-industrial complex. When evaluating these transactions, it is necessary to take into account their impact on the environment. The paper analyzes the problems associated with the evaluation of these transactions and identifies ways to improve the evaluation methods. The authors ' approach to evaluating acquisitions based on the assessment of changes in the company's potential is intended to improve the accuracy of the assessment and reduce the risks of revaluation of discounted cash flow from acquisitions. Assessment of potential changes as a result of the implementation of integration projects will allow assessing the economic impact of takeover options, taking into account the environmental consequences for the territory. The proposed approach is aimed at more accurate accounting for changes in intellectual capital of the combined company as a result of integration. Rationalization of the evaluation of the effectiveness of acquisitions will allow owners and management of agro-industrial companies to reduce the risks of making ineffective decisions.

Highlights

  • The agro-industrial complex of Russia has a number of systemic problems that prevent the country from taking a well-deserved share in the total world food production

  • The proposed approach to assessing acquisitions based on the assessment of potential changes is designed to reduce the risks of revaluation of discounted cash flow from acquisitions

  • Assessment of potential changes as a result of the implementation of integration projects will allow evaluating the effectiveness of projects for the long-term development of the agro-industrial complex

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Summary

Introduction

The agro-industrial complex of Russia has a number of systemic problems that prevent the country from taking a well-deserved share in the total world food production. This industry has significant potential and can become a source of development of vast territories of Russia. The deterioration of political and economic relations with Western European countries affected all sectors of the Russian economy. Russian companies have been able to take a larger share in the domestic market as a result of reduced competitive pressure from foreign companies. The crisis has made it difficult for Russian companies to use relatively available and cheap foreign debt capital. Many declared investment transactions were suspended or canceled due to general uncertainty

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