International Scientific Conference „Contemporary Issues in Business, Management and Education“, International Scientific Conference „Contemporary Issues in Business, Management and Education“

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Cross-Border Mergers and Acquisitions Factors in Joining the European Union Countries
Daiva Burksaitiene, Kristina Garskaite-Milvydiene

Last modified: 2017-05-10

Abstract


Mergers and acquisitions (M&As) are increasingly being used in the business world, and this process plays an important role in economic theory and lays the foundations for sustainable business development. The global recovery in foreign direct investment (FDI) was strong in 2015, with global FDI flows jumping by 38%, their highest level since the global economic and financial crisis of 2008–2009. A surge in cross-border M&As to $721 billion, from $432 billion in 2014, was the principal factor behind the global rebound. These M&As were partly driven by very large corporate reconfigurations by multinational enterprises (MNEs), i.e. changes in legal or ownership structures, including shifting their headquarters for strategic reasons and tax inversions. This paper examines the key M&As stimulating strategic objectives and causes, and ways of this process, as well as the cross-border M&As market activity. The objective of this paper is to identify ways, purposes and reasons of M&As transactions, and to present the factors influencing this process and market activity. The object of the research is the M&As transactions market. Research methodology is based on scientific literature and statistical information systematic, comparative, logical and econometric analysis.

 

DOI: https://doi.org/10.3846/cbme.2017.076


Keywords


M&As factors, synergy, cross-border M&As, GDP growth, correlation analysis.

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