Mergers and acquisitions as an opportunity getting new competitive advantages in agro business

Abstract

The article is devoted to the issues of mergers and acquisitions of agricultural enterprises of Ukraine, in order to gain new opportunities in competition. The main competitive advantages, which are additionally obtained by weak agribusiness enterprises in forming an integration association with more promising enterprises in this industry, are highlighted. Today, despite the fact that our country is very interested in increasing sales to foreign markets, especially EU markets, under free trade conditions, the question remains about increasing the competitiveness of Ukrainian enterprises and enlarging their volumes. That is why the topic of this research is relevant and has some practical significance for the further development not only of individual enterprises, but also of the agrarian sphere of the economy of Ukraine as a whole. The purpose of this article is to outline the importance of processes such as mergers and acquisitions to improve the competitive advantage of agribusiness. According to the objective, the task was to investigate the current trends in the development of agribusinesses in the context of mergers and acquisitions that have already taken place. The main methods of this study are the methods of empirical research, such as observation, comparison, measurement, as well as abstraction, analysis and synthesis, induction and deduction. The results of the study have drawn conclusions on the positive impact of such processes as mergers and acquisitions on the competitiveness of agribusinesses. The value of the research. Scientific and practical significance of the work. The research is of practical value, as evidenced by the recommendations, to improve the competitive position of businesses operating in the agricultural sector by consolidating their businesses and increasing their capital through mergers with other enterprises.

The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

“…Mergers and acquisitions (M&A) can create extraordinary competitive advantages for companies, especially for worse financial markets (Tarighi et al 2022a). Firms engaged in mergers and acquisitions have access to efficient and knowledgeable human resources, less expensive financing, tax benefits, high-quality domestic products, and takeover market power in a particular region (Pavliuk and Nechay 2019). Mergers and acquisitions (M&A) may be a vital tactical mechanism for incessant adaptation, sustainable business growth, and financial stability (Bauer et al 2022;Muhindi 2022).…”

“…In this regard, firm age has both positive and negative effects on financial success (Papadogonas 2007;Ilaboya and Ohiokha 2016;Liu 2020), both of which can be justified through theories of learning by doing, as well as the liability of obsolescence, respectively (Tarighi et al 2022a). Given that the mergers and acquisitions (M&A) process can bring competitive pros to firms (Pavliuk and Nechay 2019;Tarighi et al 2022a;Muhindi 2022), we argue that those enterprises participating in M&A actions are expected to have better financial growth in the periods of pre-and post-COVID-19 pandemic. To analyze this argument more precisely, we examined the control effects of the M&A variable.…”

“…Considering that M&A can create competitive advantages by improving current products, seizing market power in a particular area, declining financing costs, tax advantages, etc. (Pavliuk and Nechay 2019), we are curious to know if Iranian firms engaging in M&A can dispose of the COVID-19 financial crisis.…”

Corporate Social Responsibility Disclosure (CSRD) and Financial Distressed Risk (FDR): Does Institutional Ownership Matter?

“…One of the effective tools to gain a competitive advantage in the market can be mergers and acquisitions (M&A) [177,178]. M&A can have great benefits for companies, including declining financing costs, tax advantages, obtaining easier access to a skilled labor force, seizing market power in a particular area; strengthen current products by uniting complementary product portfolios [179]. The value creation theory states M&A can increase labor productivity and financial performance, and the transfer theory highlights M&A is a wealth transfer from workers to shareholders without changing productivity at the acquired company [53].…”

Earnings Management, Related Party Transactions and Corporate Performance: The Moderating Role of Internal Control

“…It is also notable that mergers and acquisitions are one of the most common strategies for companies to gain a competitive advantage (Haeruddin 2017;Sinclair and Keller 2017). Reducing capital financing costs, tax advantages, obtaining easier access to a skilled labor force, seizing market power in a particular area, and strengthening current products by uniting complementary product portfolios are some examples of M&A advantages (Pavliuk and Nechay 2019). Based on the value creation theory, M&A can increase labor productivity and financial performance, whereas the transfer theory implies M&A is a wealth transfer from workers to shareholders without changing productivity at the acquired company.…”