Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method

With every year, the application of merges and acquisitions strategy becomes more and more topical for Russian companies. One of the most topical issues is carrying out the analysis of efficiency of M&A transactions that is also confirmed by increasing the number of works in the field of ass...

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Autor principal:	S. N. Virabyan
Formato:	article
Lenguaje:	RU
Publicado:	Real Economics Publishing House 2018
Materias:	merge acquisition methods of an assessment dea method oil and gas branch efficiency productivity Risk in industry. Risk management HD61
Acceso en línea:	https://doaj.org/article/477536df6b2446f1aff3754af96b0911
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spelling	oai:doaj.org-article:477536df6b2446f1aff3754af96b09112021-11-19T10:41:59ZMeasuring the effectiveness of mergers and acquisitions: features of the application of the DEA method2618-947X2618-998410.17747/2078-8886-2017-6-58-65https://doaj.org/article/477536df6b2446f1aff3754af96b09112018-02-01T00:00:00Zhttps://www.jsdrm.ru/jour/article/view/734https://doaj.org/toc/2618-947Xhttps://doaj.org/toc/2618-9984With every year, the application of merges and acquisitions strategy becomes more and more topical for Russian companies. One of the most topical issues is carrying out the analysis of efficiency of M&A transactions that is also confirmed by increasing the number of works in the field of assessment of efficiency of M&A transactions of companies. In this article, the main methods of assessment of efficiency of M&A transactions, and also possibility of use of the DEA method in determining efficiency of transactions of the oil and gas companies are considered for example. The comparative analysis of application of traditional methods and the DEA method using example of an assessment of efficiency of acquisition of JSC Rosneft is carried out. Results of the analysis showed that it is necessary to carry out a complex assessment of productivity of the M&A transaction, using some methods and assessment approaches, since the DEA method not always works in a section of an assessment of efficiency before and after the transaction. So, according to the given calculations, the effect of acquisition in the first year after acquisition was positive (0,001%), but by 2014 became 0,9%. Profitability of assets as started decreasing, and two years later the total change became 5%. Thus profitability of the capital increased in the first year by 26% however in a year this value decreased. At the same time, this method is applicable for an express choice of the companies purposes from a large number of the companies. The sequence of steps is developed for DEA method application in an assessment of efficiency of carrying out transactions on merges and acquisitions, and also a technique of definition of DMU for an assessment of efficiency of one transaction within DEA method use that gives to research the high practical importance. Recommendations about express selection of the companies purposes for carrying out the transaction of M&A are made.S. N. VirabyanReal Economics Publishing House articlemergeacquisitionmethods of an assessmentdea methodoil and gas branchefficiencyproductivityRisk in industry. Risk managementHD61RU Strategičeskie Rešeniâ i Risk-Menedžment, Vol 0, Iss 6, Pp 58-65 (2018)
institution	DOAJ
collection	DOAJ
language	RU
topic	merge acquisition methods of an assessment dea method oil and gas branch efficiency productivity Risk in industry. Risk management HD61
spellingShingle	merge acquisition methods of an assessment dea method oil and gas branch efficiency productivity Risk in industry. Risk management HD61 S. N. Virabyan Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
description	With every year, the application of merges and acquisitions strategy becomes more and more topical for Russian companies. One of the most topical issues is carrying out the analysis of efficiency of M&A transactions that is also confirmed by increasing the number of works in the field of assessment of efficiency of M&A transactions of companies. In this article, the main methods of assessment of efficiency of M&A transactions, and also possibility of use of the DEA method in determining efficiency of transactions of the oil and gas companies are considered for example. The comparative analysis of application of traditional methods and the DEA method using example of an assessment of efficiency of acquisition of JSC Rosneft is carried out. Results of the analysis showed that it is necessary to carry out a complex assessment of productivity of the M&A transaction, using some methods and assessment approaches, since the DEA method not always works in a section of an assessment of efficiency before and after the transaction. So, according to the given calculations, the effect of acquisition in the first year after acquisition was positive (0,001%), but by 2014 became 0,9%. Profitability of assets as started decreasing, and two years later the total change became 5%. Thus profitability of the capital increased in the first year by 26% however in a year this value decreased. At the same time, this method is applicable for an express choice of the companies purposes from a large number of the companies. The sequence of steps is developed for DEA method application in an assessment of efficiency of carrying out transactions on merges and acquisitions, and also a technique of definition of DMU for an assessment of efficiency of one transaction within DEA method use that gives to research the high practical importance. Recommendations about express selection of the companies purposes for carrying out the transaction of M&A are made.
format	article
author	S. N. Virabyan
author_facet	S. N. Virabyan
author_sort	S. N. Virabyan
title	Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
title_short	Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
title_full	Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
title_fullStr	Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
title_full_unstemmed	Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method
title_sort	measuring the effectiveness of mergers and acquisitions: features of the application of the dea method
publisher	Real Economics Publishing House
publishDate	2018
url	https://doaj.org/article/477536df6b2446f1aff3754af96b0911
work_keys_str_mv	AT snvirabyan measuringtheeffectivenessofmergersandacquisitionsfeaturesoftheapplicationofthedeamethod
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Measuring the effectiveness of mergers and acquisitions: features of the application of the DEA method

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