The specifics of mergers and acquisitions of innovative and technological companies

Abstract

Subject. The article reviews distinctions of M&A deals in innovation and technology. Objectives. We determine the specifics of innovative and technological companies and its impact on the synergy, process, finance, valuation of M&A deals. Methods. The article employs methods of generalization, comprehensive analysis, systematization, specification, comparison, study into trends and the structure. Graphics and tables are used to display the findings. Results. We conducted the content analysis of the term Mergers & Acquisitions, thus finding the divergence of foreign and the Russian approaches. We provide our own definition of the concept and analyzed the dynamics of the overall M&A market and the innovation and technological sector. The article describes operational distinctions of innovative and technological companies and compares them with conventional sectors. The article determined the specifics of synergy, process, finance, valuation of M&A deals in innovation and technology. Conclusions and Relevance. The innovation and technology sector saw M&A deals become more frequent for the recent five years. What distinguishes them is the number of startups and infant businesses, large M&A deals in order to develop their ecosystems, involve digital technology companies. Traditional approaches should be adapted for structuring M&A deals, their arrangement, financing and valuation of target companies. The findings can lay the groundwork for further studies into the specifics of the innovation and technology sector, M&A deals, and set up the methodological framework for the valuation of innovative and technological companies. The findings can also immediately support parties of M&A deals from theoretical perspectives.