Evaluation of the Effectiveness of the M&A Deal by the Example of the Purchase Tele2-Russia operator by VTB Bank

Student: Krivov Arsenii

Supervisor: Ilya Partin

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

In recent years, the number of M&A deals has increased significantly. However, about half of them are not effective. Despite the fact that there is a rapid growth of M&A market, the problem of efficiency deals is very serious: according to Bloomberg, many of deals not pay back invested in them funds, and some integrated companies are lagging behind in their development from the competition. This trend is particularly visible in the telecommunication market. Therefore, in this work the practical goal is to evaluate the effectiveness of mergers and acquisitions on the example of the purchase by VTB of the telecommunications operator Tele2 Russia. To value the company I used the income method of evaluation with the use of discounted cash flows, and to calculate the efficiency of transaction I used the synergy method. The study revealed that the deal was effective.

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