THE SCOPE OF DUE DILIGENCE IN CROSS-BORDER ACQUISITIONS IN CENTRAL AND EASTERN EUROPE
Alen Sacek ()
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Alen Sacek: University of Latvia
European Journal of Business and Economics, 2015, vol. 10, issue 1, 574 volume1: 10
Abstract:
Cross-border acquisitions play an important role in the corporate strategic development and international expansion. The paper summarizes the results of the dissertation, which intends to establish vital link between research and practice, deeply exploring the risk assessment methods and the scope of due diligence audit in the pre-acquisition phase. The central hypothesis of the comprehensive model stated that thorough due diligence in the pre-acquisition phase is necessary to make successful cross-border acquisition. The empirical evidence has been drawn on data sample of acquisitions made by automotive firms in cross-border acquisitions in the Central and Eastern Europe. The main results support the proposition that the thorough due diligence audit is necessary pre-requisite for successful acquisition. The findings further support the clear trend: In the past few years, several big automotive leaders strategically gain more control over their supply chains by acquiring technology specialists. From a practical standpoint, the research results provide acquisition management with a simple method of performing the pre-acquisition evaluation of potential acquisition candidates.
Keywords: due diligenceemerging markets; mergers and acquisitions; risk assessment (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:aad:ejbejj:v:10:y:2015:i:1:p:574
DOI: 10.12955/ejbe.v10i1.574
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