The Analysis of Effectiveness of M&A Deals in Retail Chains

Mergers and acquisitions are optimal in the competitive struggle and modernization of enterprises, their number is constantly growing. Evaluation of effectiveness is necessary in the planning and control of these deals, this is due to the relevance of this study. This work is devoted to the impact of the deals of merger and acquisition between «Lenta» and the chain of hypermarkets «K-Ruoka» in 2016 in the retail chains on «Lenta's» performance. In the first chapter, the theoretical bases of mergers and acquisitions are considered, the Russian market of these deals in the area of retail chains is analyzed. In the second chapter, the methodology for assessing the effectiveness of transactions is examined. In the third chapter, a positive impact on the financial condition of the «Lenta» is obtained, using the analysis of financial and market indicators, value models and calculations of the synergistic effect. The conducted researches demonstrate the strategy of active growth of the company during 2012-2017, which is the main reason for the dynamics of financial and market indicators. Synergetic effect is a positive value, the sources of its formation are the increase in trade and production areas, the strengthening of positions in the retail market. Value indicators show positive dynamics, which mean the company's value growth, its development and effective management. It is necessary to apply a comprehensive analysis using various methods with market and area conditions for evaluation of effectiveness mergers and acquisitions in the retail chains.