To increase production and improve the quality of the m&a data room structure and services, new methods and tools of corporate management are required.
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Mergers and acquisitions are a current dynamic trend in the development of modern corporations. The main reason for the rapid growth of this trend is competition, which forces enterprises to actively seek investment opportunities, effectively use all available resources, and optimize costs. By expanding their capabilities, companies create diversification and restructuring strategies. From this perspective, corporate control transactions are a natural response to changing markets.
Mergers and acquisitions expand the horizons of modern companies. There are two main types of investment opportunities: internal and external. Internal investments can be obtained through reorganization or investments in the company itself, external investments are associated with the acquisition of new assets or their inclusion in new projects.
Companies should consider another circle of opportunities, involving interaction with other market players, and constantly look for such opportunities themselves, comparing the potential for internal growth and mergers.
Mergers and acquisitions occur at a certain stage in the stabilization of the economic situation of countries and regions. Foreign practice indicates that such a reorganization of enterprises is a characteristic of an increase in the competitiveness of the economy, and at the same time, its volumes correlate with the general state of the economic environment.
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The processes of globalization and economic integration are integral processes of the modern world economy:
- the processes of globalization are the processes of the formation of an integral world economy, as a result of the intensification of international division and cooperation of labor, liberalization, and the emergence of new complex economic systems linking countries in general and regions in particular;
- the processes of economic integration imply the joint activity of several states at the regional level, leading to the unification of their economies into a single regional economic complex.
Integration processes can take place both within the framework of an already established system – in this case, they lead to an increase in the level of its integrity and organization, and when a new system emerges from previously unrelated elements. The combined parts do not remain in the same state, but begin to interact with each other, changing one another, losing their previous properties, and acquiring new ones. The current stage of economic development shows that one of the key factors for the company’s success is building an effective corporate governance system. Moreover, in developed economies, corporate governance is seen as a tool to reduce investment risks in a volatile environment, and, therefore, as a key factor in sustainable development.
The individual parts of an integrated whole can have varying degrees of autonomy. In the course of integration processes in the system, the volume and intensity of interconnections and interactions between elements increases, in particular, new levels of management are being built. Integration is also a process of movement and development of a certain system.