LESSONS OF CRISIS AND STRATEGY M&A AT TRANSITION TO A GROWTH TRAJECTORY

Abstract

The market mergers and acquisitions have suffered greatly during the global financial crisis. 2008 was a year of disappointments for the market participantеs mergers and acquisitions (M & A) - for Russian market as well as the whole world. According to the magazine «Mergers and Acquisitions» by comparison with the record high of 2007 reached $ 122.16 billion, the capacity of M & A market in Russia in 2008 fell by 36,5% - to $ 77.55 billion.

In the pre-crisis period, 60-65% of the sources of financing M & A deals were formed by loans from foreign banks. Corporations have been advantageous to resort to foreign borrowing and receive a margin due to the difference in percentage (4-5% against 15-20% per year). This factor is partly the cause of decline of the market M & A in the crisis period.

In the post-crisis period as the equalization rate is no longer this speculative motive. As corporations prepare for market changes? The authors propose several ways for getting out of the situation, such as using own financial sources , transition from loans to IPO, strategy for developing markets, increasing in premium in the fight competitions