| Abstract [eng] |
This topic of the master’s final degree project is chosen because corporate combination is one of the most common ways to reorganize a business. Corporate combination is the object of this project. Mergers or acquisitions are intended to benefit from the financial and operational synergies created by this transaction. It increases competitiveness, market share and diversification of services and / or products attracts a new consumer segment. In this way, the combination corporates aim to keep pace with the changes in the business world and to adapt to them as quickly as possible, ensuring their business continuity. However, no matter how attractive corporate combination looks, it is emphasized that it is both financially and time-consuming, so it is very important to properly assess the decision to combinate corporates even before it is taken. A properly conducted valuation of pre-combination helps to objectively assess what changes in operations of company will result from such a transaction and whether it is worth accepting it at all. Meanwhile, the valuation of post-combination helps to reveal whether the goals of corporate combination have been achieved by this transaction. Most researchers in this field have analyzed corporate combinations from only financial or performance appraisal perspective, but the aim of this master’s final degree project is to develop a combined model of valuation of corporate combinations that not only combines these both aspects but also takes into account the time aspect. It was conducted a study of selected cases of combinations to test the model. As globalization has become stronger in recent decades, increase the number of transactions of cross-border combinations, so in this project as cases were selected not only domestic but also cross-border corporate combinations in Lithuania. The financial valuation of the case of domestic corporate combination of AB AUGA group with AB Baltic Champs revealed that after the combination increased revenue, improved profitability and turnover indicators, increased the value of the company, but also increased costs and decreased liquidity indicators. A review of the financial valuation of the case of the cross-border combination of AB Linas Agro Group with three Latvian poultry companies (SIA Lielzeltini, SIA Cerova and SIA Broileks) revealed that this transaction had a positive impact only on the value of the company. The results of the performance valuation showed that in the case of a domestic combination increased in investment in human resources, leading to an increase in HCROI and HCVA. Meanwhile, in the case of cross-border combination, there has been a decreased in investment in human resources, leading to a decrease in HCROI and HCVA. In both cases, the corporate combinations led to diversification of production and growth in market share. In summary, financial synergy was not achieved only in the case of cross-border combination, and operational synergy was achieved in both cases. Despite the fact that most of the analyzed indicators decreased after the cross-border combination, the goals of combinations were achieved in both cases. It reveals that the success of a corporate combination depends on the goals of the combination. |
