Mergers and Acquisitions Risk Modeling

Yulia Vertakova, Inga Vselenskaya and Vladimir Plotnikov
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Yulia Vertakova: Kursk Branch, Financial University under the Government of the Russian Federation, 305016 Kursk, Russia
Inga Vselenskaya: Kursk Branch, Financial University under the Government of the Russian Federation, 305016 Kursk, Russia
Vladimir Plotnikov: General Economic Theory and History of Economic Thought Department, St. Petersburg State University of Economics, 191023 St. Petersburg, Russia

JRFM, 2021, vol. 14, issue 9, 1-24

Abstract: In the context of the dynamics of the modern external environment, the importance of risk management in general and the risks inherent in the processes of mergers and acquisitions has sharply increased. This is becoming one of the primary challenges in business, the solution of which will contribute to economic growth and development. In this article, based on a broad review of literature, the key risks of mergers and acquisitions are identified and classified, the level of their significance is assessed, the relevant management tools are selected for each risk and a computer program is developed that implements the selection of tools for each specific merger and acquisition transaction. A comprehensive automated methodology for the selection of risk management tools in the implementation of mergers and acquisitions can become an effective risk management tool for companies participating in such transactions. This will allow to identify and track risks in a timely manner, assess their significance, and, among other things, contribute to the adoption of effective management decisions regarding risk management.

Keywords: mergers and acquisitions; risk management; risk management methodology; risk management tools; model automation (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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