MERGERS AND ACQUISITIONS AS A DEVELOPMENT STRATEGY FOR COMPANIES FACING TODAY'S CHALLENGES

Abstract

Background. Adapting to unforeseen economic, political, and social changes in wartime conditions, companies are focused on identifying new opportunities for profitable growth. Business entities are shifting from organic to inorganic growth strategies, using such tools as mergers and acquisitions (M&A), which ensure increased competitiveness and rapid adaptation to present conditions. The study aims to explore the ways for companies to develop in the face of current challenges, taking into account the impact of the negative and positive trends in the M&A market in Ukraine. The object of the study is the transformation pathways of domestic companies in a turbulent market environment, while the subject is the M&A market in Ukraine.

Methods. The study uses the methods of systemic and comparative analysis, generalization, and graphical and tabular methods.

Results. The ways of development of Ukrainian companies during the war are studied. Attention is focused on the adjustments to their strategies that have taken place in recent years. The dynamics of M&A deals in Ukraine in 2017-2023 are analyzed. The factors that negatively affect business in the country are identified, and their impact has become even stronger in the current environment. The most attractive sectors of Ukraine for investment are revealed. In 2022, the largest deals took place in the IT and telecommunications sectors, whereas in 2023, there was a revival of deals in the construction, logistics, and agricultural sectors. The key indicators are described, which are extremely important for current monitoring to make informed decisions on corporate consolidation. It is emphasized that in wartime conditions, with an increased number of risks, the range of performance indicators for evaluating companies' effectiveness has expanded.

Conclusions. Emphasis is placed on the main motives of investors for concluding M&A deals in Ukraine (acquisition of competitors, purchasing businesses at attractive prices, diversification of activities, etc.). A necessary condition for concluding deals will be conducting due diligence (DueD), a procedure that will confirm the reliability of the partner company. DueD will facilitate obtaining comprehensive information about the company's status in various areas of operation (financial, operational, legal, tax, commercial, environmental, etc.), confirming the possibility of achieving the expected complementary and synergistic effects from combining efforts in modern economic conditions.