Abstract
Rapid technological advances, globalization is leading to intensified global competition. In order to remain competitive and strengthen their market position, companies often opt for an external growth strategy through M&A. The most frequently mentioned reason for merging companies to achieve a synergistic effect. For this reason, it is essential that the buyer assesses the potential concentration in order to create value for shareholders. This paper focuses on analyses and characteristics and definition of synergy effect, analysis of main sources of synergy, definition of key variables in assessment of synergies.
Highlights
The technological advances, globalization is leading to intensified global competition
In order to maintain their competitiveness and strengthen their market position, companies often choose a strategy for external growth through mergers and acquisitions
We used the abstraction method to define the essential characteristics of the examined phenomena - synergistic effects
Summary
The technological advances, globalization is leading to intensified global competition. Mergers and Acquisitions [1] is a broad and challenging subject, as evidenced by a number of professional publications, studies conducted in business practice and the existence of a large number of consulting, financial and investment firms engaged in merger consultancy. By merging with another business, they gain quick access to new technologies, markets, qualified human resources, built distribution channels, loyal customers and many other sources of future growth. The paper was based on the results of research by both foreign and domestic authors, especially in the area of merging companies and their motives
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