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Mergers and Acquisitions Risk Modeling

Author

Listed:
  • 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)

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.

Suggested Citation

  • Yulia Vertakova & Inga Vselenskaya & Vladimir Plotnikov, 2021. "Mergers and Acquisitions Risk Modeling," JRFM, MDPI, vol. 14(9), pages 1-24, September.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:9:p:451-:d:639681
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    References listed on IDEAS

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