scholarly journals VALUE-BASED MANAGEMENT IN THE PROCESS OF MERGERS AND ACQUISITIONS: A SYNERGISTIC APPROACH

2017 ◽  
pp. 106-120
Author(s):  
Halyna OSTROVSKA ◽  
Volodymyr TYTOR
Keyword(s):  
Mergers And Acquisitions ◽  
Business Environment ◽  
Added Value ◽  
Synergy Effect ◽  
International Expansion ◽  
Value Based Management ◽  
Company Value ◽  
Characteristic Features ◽  
Investment Portfolios ◽  
Acquisition Processes

Introduction. The dynamism of the integration processes, activation of mergers and acquisition processes, modernization of enterprises, development of new entrepreneurship forms, strengthening the international expansion of leading companies, the internationalization of capital is a characteristic features of the world economic development present stage. Creating different types of integrated structures becomes one of the effective ways enterprises adapt to the transformation processes, a prerequisite for organizational and economic preconditions for sustainable economic growth and competitiveness increasing of businesses - participants of integrated union. In present business environment of mergers and acquisitions (mergers&acquisitions, M&A) is one of the most important mechanisms for the rising value of enterprises, improving their activity effectiveness, risk diversification and optimization of investment portfolios by achieving a synergistic effect. Purpose. Development and substantiation of methodical approach due to the selection of companies based on synergetic merger (absorption), as a criteria for evaluating the effectiveness of the company value management and making recommendations for its practical application. Results. The author puts forth his conception of the improvement of the technique of the estimation of the synergy effect from mergers and acquisitions of companies. Conclusion. So, mergers and acquisitions of enterprises agreements have ample opportunities in term of the implementation of key strategic objectives and added value business. However, despite the high quantitative dynamics, in practice in most cases, the value still has not been created. This is primarily due to the inadequate estimates synergy effect and limited use of strategic opportunities to create added value in step of integration.

Corporate Actions and Company’s Value Evidence from Indonesia Stock Exchange for Ten Years

2012 ◽  
Vol 4 (1) ◽  
Author(s):  
Nurul Hasanah Uswati Dewi
Keyword(s):  
Mergers And Acquisitions ◽  
Stock Exchange ◽  
Poor Quality ◽  
Added Value ◽  
Financial Factors ◽  
Company Value ◽  
Before And After ◽  
The Difference ◽  
Corporate Actions

The purpose of managing a company is to prosper the owners, in which the higher the company’s value, the higher the owners’ welfare. In this case, the company’s value can be reflected in financial performance and company size as seen in the total assets, sales, and market capitalization. In addition, agency theory that leads to the opportunistic nature of management will result in poor quality of earnings and corporate value. The purpose of this study is to examine whether there are differences of the effect of the financial factors on the company’s value before and after doing a merger and acquisition. Since this effort is to provide company’s added value, it is expected to create more long-term added value than just temporary one. Therefore, the effect of the announcement of the merger can’t be seen after the merger or acquisition takes place, but its changes need monitoring afterwards that is in periods. It took several years before and after mergers and acquisitions. The sample consists of companies listed in Indonesia Stock Exchange for ten years. Wilcoxon Signed Ranks Test was employed in this study. The result shows that there is the difference of effect of financial factors on the company’s value before and after mergers and acquisitions. Keywords - corporate actions, merger, acquisition, company value

scholarly journals ADVANTAGES AND DISADVANTAGES OF A VALUE BASED APPROACH TO MANAGEMENT OF ENTERPRISE

2020 ◽  
pp. 63-67
Author(s):  
Moiseiev V. ◽  
Dombrovska S.
Keyword(s):  
Added Value ◽  
Enterprise Management ◽  
Management Approach ◽  
Value Assessment ◽  
Management Decisions ◽  
Value Based Management ◽  
Advantages And Disadvantages ◽  
Company Value ◽  
A Value ◽  
Oriented Approach

he article investigates the features of using a value-oriented approach to enterprise management in modern changing eco-nomic conditions. It is established, that the urgent problem today is to determine a reasonable target for value-oriented manage-ment. The application of indicators and models of enterprise valuation adequate to the Ukrainian economic conditions is analyzed. The advantages of the indicator of the value of the enterprise as the main criterion for assessing the efficiency of economic entities are identified. The foreign experience of introduction of the value-oriented approach in the management of the enterprises is ana-lyzed. The main directions of increasing the value of the company are formulated. It is established, that the indicator in the system of value-oriented management approach should reflect the value of the company and the effectiveness of management decisions. The main goal of the value-oriented management system is formulated, which is to coordinate and motivate decision-making that will lead to long-term competitive advantages. It was found, that companies which use the principles of value-oriented approach in management, have advantages over companies in similar areas of business that use traditional tools for making management decisions. The advantages of the value-oriented approach and obstacles in its implementation in the management of Ukrainian enterprises are identified. According to the VBM approach, the main indicator of evaluating the results of the enterprise is its value. This indicator of the value-oriented approach has certain advantages over traditional criteria for assessing the effectiveness of the company. It is noted, that using the approach of cost-oriented management of the enterprise does not always cause positive changes in the company's activities, which is caused by such major problems as difficulties in setting motivational goals and incon-sistency between EVA and shareholder value. It is proposed to take the maximization of the market value of the domestic enterprise as a benchmark for ensuring its positive results.Keywords: Value Based Management, value-based approach, value of company, value assessment, added value. У статті досліджено особливості використання вартісно-орієнтованого підходу до управління підприємством в сучасних мінливих економічних умовах. Виявлено переваги показника вартості підприємства як основного критерія оцінювання ефективності діяльності суб’єктів господарювання. Проаналізовано зарубіжний досвід впровадження вартісного підходу в управлінні підприємствами. Сформульовано основні напрямки підвищення показника вартості компанії. Визначено переваги вартісно-орієнтованого підходу та перепони у його впровадженні в управлінні підприємствами України. Запропоновано приймати максимізацію ринкової вартості вітчизняного підприємства за орієнтир забезпечення його позитивних результатів діяльності. Ключові слова: вартісно-орієнтоване управління, вартісний підхід, вартість компанії, оцінка вартості, додана вартість.

scholarly journals DIFFERENCES IN ASSESSING SELLERS' BEHAVIOUR BY THE CUSTOMERS OF BABY BOOM, X, Y AND Z GENERATIONS

2019 ◽  
Vol 7 ◽  
Author(s):  
Jana Kovaľová ◽  
Zuzana Birknerová ◽  
Miroslav Frankovský ◽  
Eva Benková
Keyword(s):  
Generation X ◽  
Generational Differences ◽  
Baby Boom ◽  
Business Environment ◽  
Added Value ◽  
Generation Z ◽  
Questionnaire Method ◽  
Buying Behaviour ◽  
Main Factor

The role of sellers is changing in a turbulent business environment and only the sellers who provide first class services and approach to them in a responsible way can survive among competitors. Customers perceive it as an added value and have a good feeling from buying. It is just sellers who are becoming the main factor that contributes to the competitiveness of a whole organization. The segmentation of customers into individual generations enables us to better understand their preferences and requirements, it is then possible to predict their tendencies in buying behaviour and thus increasing the success of sales. The main aim of the paper is to present the issue of different assessment of sellers’ behaviour by the customers of the Baby Boomers, Generation X, Generation Y and Generation Z. In connection with these differences, the aim of the research is to identify generational differences in the assessment of manipulative, assertive, stressed and engaged behaviour of sellers, as well as to analyse the determinants that affect the buying behaviour of customers. The research was conducted using a questionnaire method and mathematical-statistical methods on a sample of 207 respondents. The research results confirm the existence of statistically significant differences in assessing the determinants of sellers’ behaviour from the perspective of individual customer generations.

Influence of Quality on Manufacturing Processes in Enterprises from the Perspective of Generating Value Added For Customers

2021 ◽  
Vol 12 (1) ◽  
pp. 128-128
Author(s):  
Kostiuk Yaroslava
Keyword(s):  
Quality Management ◽  
Corporate Culture ◽  
Industry 4.0 ◽  
Value Added ◽  
Business Environment ◽  
Added Value ◽  
Professional Literature ◽  
Value Stream ◽  
Global Dynamic ◽  
Value Stream Map

In the current global dynamic and competitive business environment of Industry 4.0, small and medium-sized enterprises face a major challenge of expanding their market activities and adapt to new conditions in order to survive in times of economic or pandemic crisis. The implementation of comprehensive quality management in business environment within EU organizations is a response to this challenge for global competition (Abdul, Sumantoro, & Maria, 2019). Current problem is the fact that the implementation and monitoring of quality management as a process of business management in the majority of small and medium-sized enterprises (SMEs) is not sufficiently used, underestimated, or even considered to be obsolete (Rigby, Bilodeau, 2018). In an enterprise with good financial health and healthy corporate culture, all transactions and processes are carried out properly and the relationships among all stakeholders (employees, suppliers, and customers) are successful. For other companies, it is necessary to take steps to ensure quality and follow them (Fernandes et al., 2017) in order to move towards the concept of Industry 4.0. According to published professional literature, each research worker has developed their own framework for mapping value production operations based on specific needs and interests in the fields under review. However, the relationship between the quality processes and value stream maps has not been adequately addressed in professional literature, especially in the case of small and medium-sized enterprises. Therefore, for achieving the objective of the contribution, the following research questions have been formulated: To which extent quality participates in generating value added within production process? In which production operations does the quality factor contributes most to generating value added? Keywords: Quality value stream map, Value stream map, quality management, added value for the customer.

Enhancing Entrepreneurship

2020 ◽  
pp. 87-108
Author(s):  
Nikolaos G. Bitzidis ◽  
Sotirios G. Dimitriadis ◽  
George I. Karavasilis ◽  
Evangelos C. Kehris ◽  
Vasiliki G. Vrana
Keyword(s):  
User Satisfaction ◽  
Perceived Risk ◽  
Structural Equation ◽  
Public Procurement ◽  
Business Environment ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Added Value ◽  
Perceived Ease Of Use ◽  
Entrepreneurial Activities

One of the major roles of governments is to create a favorable business environment for fostering entrepreneurial activities, including good infrastructure and a culture that encourages the adoption of technologies. In such a policy context, the Greek National Electronic Public Procurement System (ESIDIS) was developed. The use of ESIDIS is mandatory for the employees, and its success depends on users' satisfaction. The chapter investigates the factors influencing employees' satisfaction when using the system. Perceived usefulness, perceived ease-of-use, perceived risk, and willingness to learn were investigated using empirical research. Structural equation modeling was used for the analysis of the data. Perceived usefulness has the most significant role in determining user satisfaction while risks importance is diminished when users understand the usefulness of the system for their job performance. Managers and policymakers should take these factors into consideration in order to improve users' satisfaction and consequently maximize the added value of the system for the entrepreneurs.

scholarly journals CURRENT GLOBAL THEORIES, TRENDS AND DEVELOPMENTS IN THE ANALYSIS AND VALUATION OF A TARGET COMPANY

2021 ◽  
Vol 4 ◽  
pp. 88-96
Author(s):  
Дарья Александровна Королева
Keyword(s):  
Mergers And Acquisitions ◽  
Flow Analysis ◽  
Synergy Effect ◽  
Review Of The Literature ◽  
Discounted Cash Flow ◽  
Planning Stage ◽  
Global Trends ◽  
Q Theory ◽  
Business Efficiency ◽  
Target Company

Purpose: the aim of this paper is to perform a thorough, in-depth and current literature review on Mergers & Acquisitions. The emphasis is on the current global theories, global trends and developments within the last 10 years and so in the valuation of a potential takeover of a target company. Discussion: mergers and acquisitions are considered as one of the tools for improving business efficiency. At the same time, a merger and acquisition transaction is justified if there is a synergistic effect. However, recent studies have shown that the most common reasons for an inefficient acquisition are the overestimation of the target company and the synergy effect associated with this acquisition. Thus, the valuation of the target company is the most important aspect at the planning stage of the mergers and acquisitions process. Results: the paper provides a critical review of the literature examining the synergy theory and the development of Tobin’s Q-theory, current global trends in mergers and acquisitions, discounted cash flow analysis, and market multipliers in order to improve the valuation of the acquired company.

scholarly journals International Expansion and Transition to the Network Structure of the Multinational Companies and Their Social Consequences

2015 ◽  
Vol 63 (1) ◽  
pp. 201-205
Author(s):  
Daniela Ettaleb ◽  
Bohumil Vítek
Keyword(s):  
Network Structure ◽  
Service Providers ◽  
Business Environment ◽  
Global Market ◽  
Social Consequences ◽  
International Expansion ◽  
Employment Contracts ◽  
New Development ◽  
Globalized Economy ◽  
Control Centre

Economic globalization is associated with growing interconnectedness, interdependence and the integration of businesses into a single economic system, improving the competitiveness of businesses, and places new demands and requirements on firms. Companies that wanted to survive in a new, dynamic and competitive environment had to apply new development strategies, whose main motto was to reduce costs and to create greater flexibility on the global market. Many large companies managed huge cost reductions in the globalized economy through international expansion to the industrial periphery and semi-periphery countries (developing countries and Central and Eastern Europe) and through the transition from a pyramidal organizational structure to a network structure. The control centre of companies in a network organization deprives hierarchical and pyramidal corporate structures, rather temporarily joins a network of small suppliers, subcontractors and service providers. In the business environment networks are more flexible and adaptable than firms with a hierarchical structure. They are highly effective because they allow significant reductions in the operating costs of the company. On the other hand, the network structure of relations has a number of social consequences, such as the reduction in the number of employees, the rise in non-standard employment contracts and the abolition of responsibility.

scholarly journals Fuzzy Comprehensive Evaluation Model of M&A Synergy Based on Transfer Learning Graph Neural Network

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Mingxun Zhu ◽  
Zhigang Meng
Keyword(s):  
Neural Network ◽  
Mergers And Acquisitions ◽  
Transfer Learning ◽  
Comprehensive Evaluation ◽  
Evaluation Model ◽  
Rapid Development ◽  
Fuzzy Comprehensive Evaluation ◽  
Rate Of Change ◽  
Synergy Effect ◽  
Important Indicator

With the rapid development of modern China and the influx of capital, the number of companies has gradually increased. However, most companies cannot operate for a long time due to various reasons. Therefore, mergers and acquisitions have occurred. Large companies merge small companies to some extent. The number of employees can be guaranteed, and the market can be stabilized. However, mergers and acquisitions also have higher risks. As the pace of mergers and acquisitions accelerates, there are more and more cases of failed mergers and acquisitions. The synergy effect of mergers and acquisitions is an important indicator to judge the performance of mergers and acquisitions. This article measures the synergy obtained by the main enterprise from the perspective of performance changes, establishes an evaluation model through the rate of change of financial indicators and migration learning, estimates it through a neural network model, and conducts an empirical analysis on it. The transfer learning neural network has been studied in depth. The research of this article is to accurately assess the synergy effect obtained after mergers and acquisitions and to analyze whether the company can profit from mergers and acquisitions, so as to provide a reference for subsequent mergers and acquisitions between companies.

scholarly journals Economic Relations of Hungary and India: Seeking Ways to Be Better Than ‘Just Good’

2019 ◽  
Vol 16 (1) ◽  
pp. 77-90
Author(s):  
Péter Goreczky
Keyword(s):  
Export Performance ◽  
Geographic Distance ◽  
Business Environment ◽  
Export Market ◽  
Added Value ◽  
Economic Sectors ◽  
Economic Relations ◽  
Motivation Factors ◽  
Regulatory Barriers ◽  
Better Than

Abstract As for Hungary, core motivation factors in building economic relations are boosting the export performance of SMEs and attracting FDI projects of high added value. India as an export market is definitely a challenging target for Hungarian companies as geographic distance, cultural differences, infrastructure, and regulatory barriers can all be considered as pull-back factors. Nevertheless, an innovative product and international experience combined with the involvement of a local partner can result in success. India is one of the most important Asian investors in Hungary with a very diverse FDI stock in terms of economic sectors. Indian investors are mostly satisfied with the business environment in Hungary; however, labour shortage is considered as a challenge to be addressed. Compared to building relations with China, India today receives less attention in Hungary. However, both governments could do a lot more in accelerating the interactions of Hungarian and Indian businesses and creating more opportunities to raise economic relations to the next level.

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