Valuing Dynamic Capabilities-Based Synergies with Real Options

Andrejs Čirjevskis
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Andrejs Čirjevskis: Department of Business, RISEBA University of Applied Sciences in Business, Arts, and Technology, Meza Street 3, LV-1048 Riga, Latvia

JRFM, 2021, vol. 14, issue 2, 1-14

Abstract: Acquisition-based dynamic capabilities have become well established as a new imperative for organizing mergers and acquisitions (M&A) processes. However, understanding the full benefits and possible limits of real options applications to measure a dynamic capability-based synergy in M&A deals remains a challenge. This paper draws on real options theory to explore some of these benefits and limits to value a synergy in two highly strategic M&A deals. More specifically, the author develops the proposition that justifies the role of dynamic capabilities as antecedents of the success of M&A deals in the information and communications technology industry and demonstrates real options application to measure M&A synergies.

Keywords: real options; synergy; acquisition; dynamic capabilities; business model; the ICT industry (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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