English / ქართული / русский /
Natia Kakhniashvili
THE IMPACT OF THE GLOBAL PANDEMIC ON CORPORATE MERGER AND ACQUISITION OPERATIONS

Summary

 A corporation merger and acquisition operation is the formation of two companies into one structural unit and is managed by a common management. As a rule, these operations are carried out to strengthen the business, increase market share, achieve synergistic effect, to obtain tax benefits, to diversify products or to gain other advantages, however, as the study showed, the percentage of successful mergers in these operations is quite low. An important factor is the impact of the corona virus on economic activities, especially mergers and acquisitions. The economic damage comes not from the virus itself, but more from its preventive measures. However, it affects the decisions of both consumers and states, as well as business operators. The main problems and obstacles that corporations have already solved are noteworthy, and this is clearly evidenced by the statistical data, both in the United States and Europe, and globally. It is too early to draw conclusions about the final economic consequences of the pandemic. However, as a recommendation, it can be said that a company that plans to expand and merge with another company is well aware of all the risks and costs that may come with the transaction,
Compare them to the possible benefits and only then make a decision.
The main problems and obstacles that corporations have already solved are noteworthy, and this is clearly evidenced by statistical data both in the US and Europe, globally, or in the near future they will have to deal with them and what solutions can be found to minimize losses and use opportunities as efficiently as possible.