Opportunities and Challenges of Value Creation through Merger and Acquisitions in Cyclical Economies

Abstract

Despite prevailing financial turmoil and economic uncertainty, global M&A market has shown in 2014 an unseen growth since sub-prime crisis. The research focuses on reaching understanding and reconstructions on how management and corporate strategists can benefit from opportunities arising during various economic cycles. Development of a theoretical model that interlinks prevalence of M&A with macroeconomic variables through the thorough analysis of existing scientific empirical literature supports that M&A can represent a successful and value creating strategic growth mode during economic uncertainty periods. Global economic uncertainty highlights changes in value proposition offered by M&A.