Risk Management in Mergers and Acquisitions

Today, the market of mergers and acquisitions (M & A) is one of the most interesting phenomena, both for representatives of science and for practitioners. Today, more and more research and scientific papers are published on this topic, including risk management in transactions in the named market. Despite the growing interest, the method that could become a panacea for risk management in M & A projects has not yet been named, and this is the reason for the relevance of this work. The purpose of this paper is to consider risk management strategies in mergers and acquisitions projects. To achieve this goal, a number of tasks were accomplished: • Examine the theoretical aspects of mergers and acquisitions; • Consider the risks involved in mergers and acquisitions projects; • Consider the models used to manage risks in merger and acquisition projects; • Build a database for modeling risk management processes in M&A projects; • Analyze risk dependencies in managing M & A projects from various factors; • Simulate changes to various parameters based on the collected database; • Offer a risk management strategy for mergers and acquisitions. The study revealed that mergers and acquisitions are a popular tool for expansion, external growth, and also allow consolidating the assets of business groups and increase the competitiveness and profitability of a business. The result of modeling based on statistical data and financial statements of companies (data collection period 2009-2018) became regression equations that can be used in developing a risk management strategy in M&A projects. In addition, the expert assessment method for risk management in mergers and acquisitions projects was tested. The goal is to review risk management strategies in mergers and acquisitions projects achieved.