Mergers and acquisitions transactions strategies in diffusion - type financial systems in highly volatile global capital markets with nonlinearities

Dimitri Ledenyov and Viktor Ledenyov

MPRA Paper from University Library of Munich, Germany

Abstract: The M&A transactions represent a wide range of unique business optimization opportunities in the corporate transformation deals, which are usually characterized by the high level of total risk. The M&A transactions can be successfully implemented by taking to an account the size of investments, purchase price, direction of transaction, type of transaction, and using the modern comparable transactions analysis and the business valuation techniques in the diffusion – type financial systems in the finances. We analyzed the M&A transactions in Switzerland in 2012 in various industrial segments. We think that the globalization has a strong influence on the successful M&A deals completion in Switzerland. We believe that the fluctuating dependence of M&A transactions number over the certain time period is quasi-periodic. We think that there are many factors, which can generate the quasi periodic oscillations of the M&A transactions number in the time domain, for example: the stock market bubble effects. We performed the research of the nonlinearities in the M&A transactions number quasi-periodic oscillations in Matlab, including the ideal, linear, quadratic, and exponential dependences. We discovered that the average of a sum of random numbers in the M&A transactions time series represents a time series with the quasi periodic systematic oscillations, which can be finely approximated by the polynomial numbers. We think that, in the course of the M&A transaction implementation, the ability by the companies to absorb the newly acquired knowledge and to create the new innovative knowledge bases, is a key pre-determinant of the M&A deal completion success. In our opinion, the integrative collateral creative design thinking has a direct impact on the new innovative knowledge bases formation by companies in the highly competitive global markets. We would like to state that the winning virtuous mergers and acquisitions transactions strategies in the diffusion - type financial systems in the highly volatile global capital markets with the nonlinearities can only be selected through the decision making process on the various available M&A choices, applying the econophysical econometrical analysis with the use of the inductive, deductive and abductive logics.

Keywords: mergers and acquisitions transactions; comparable transactions analysis; business valuation methodologies; econophysics; econometrics; nonlinearities; global capital markets (search for similar items in EconPapers)
JEL-codes: C1 C32 C58 C87 D2 D21 D22 D23 D24 D46 G11 G3 G30 G31 G32 G34 L2 L25 M16 M4 (search for similar items in EconPapers)
Date: 2014-01-04
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/52697/1/MPRA_paper_52697.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/53906/8/MPRA_paper_53906.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/61946/15/MPRA_paper_61946.pdf revised version (application/pdf)

Related works:
Working Paper: Mergers and acquisitions transactions strategies in diffusion - type financial systems in highly volatile global capital markets with nonlinearities (2015)
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