Investment Security Models in Mergers and Acquisition Agreements for International Corporations
Volume 9, Issue 1 (2019), pp. 185–198
Pub. online: 30 September 2019
Type: Article
Open Access
Published
30 September 2019
30 September 2019
Abstract
The scientific paper identifies strategic motivational factors for using mergers and acquisitions to maintain a high level of investment security. Investment security models in mergers and acquisitions based on the concepts of value attractiveness and discounting corporate cash flows during growth has been developed and practically tested. A parametric relationship has been formed between the price of the shares of the integration corporate structure and the initial conditions of the integration transaction for both the acquiring corporation and the target corporation with a view to fair distribution of benefits from mergers or acquisitions.