Abstract:

The issue of merger effect assessment and company integration management is reviewed herein. It is shown that the integrity and smooth functioning of merged enterprises within an integrated company is ensured through establishing internal ties of various nature which produce a synergic effect, whose value can be used as the criterion for selection among alternatives. Four groups of ties have been identified: the production and technology ones, the production and marketing, the financial and economic, and the organization and management ties. The article shows that these ties are the source of synergic effect and identifies the synergic effect components typical for different development strategies of an integrated company. A scheme is offered for synergic effect component evaluation using changes in cash flows which result from the ties established at merging a group of enterprises in an integration process. The expediency and practicality of the proposed approach has been confirmed with potential synergic effect calculations made at selecting a strategy for developing and merging several companies involved in manufacture, installation and maintenance of automation equipment to run oil production, transportation and refinement facilities.