Impact of the COVID-19 on creating business strategies in mergers and acquisitions

Abstract

The role of M&A deals is to enable companies to achieve external growth through capital concentration. At the moment when they are not able to generate a sufficient level of revenues or work out optimal mechanisms of internal growth, there is a need to reorganize the management methodology towards providing a new source to build a stable market position. This problem is of practical importance during the COVID-19 pandemic, when many companies has been forced to look for new development paths and ways to communicate more effectively with both customers and contractors. One of such solutions are mergers and acquisitions which due to the appropriate selection of strategies, will allow optimization of the priorities adopted by the merging entities. The paper aims to present business strategies, which are used in merge processes, including the motives of participants of these transactions during pandemic. The author’s drew attention to the necessity of change the development strategies in transactions which were forced by the threats posed by the time of crisis. Preparing the determinants conditioning the implementation of selected strategies allows for the assessment of the degree of coping by enterprises with the negative effects of COVID-19 from selected sectors of the economy.

Keywords

• mergers and acquisitions
• merging entities
• the COVID-19
• business strategies of merger and acquisitions
• synergies