Problems of international merges and acquisitions in the context of global financial crises

1. Problems of international merges and acquisitions in the context of global financial crises Performed by: Anna Zaporozhets, year of study_6_group_MEB-17м-а Speciality: International Economic Relations Supervised by: Dr Alisa Mahdich, Associate Professor

2. Contents • THEORETICAL BASES OF MERGES AND ACQUISITIONS • THE ANALYSIS OF TRANSACTIONS OF THE INTERNATIONAL M&A IN THE CONDITIONS OF GLOBAL FINANCIAL CRISIS • THE PROCESS OF MERGES AND ACQUISITIONS IN THE REPUBLIC OF BELARUS

3. The purpose of the work is identification of problems of merge and acquisition and finding solutions which will help to reduce risks of a failure of this process. The objectives of the research:- to find essence of merges and acquisitions;- to analyze the tendencies of the international M&A and features of the market of M&A in the conditions of crisis changes in economy;- to analyze the The Republic of Belarus on the market of merges and acquisitions. Object of research is the complex of the scientific and practical problems connected with processes of the international merges and company takeovers in the conditions of world financial and economic crisis and the mechanism of its implementation. The subject of research is process of merge and acquisition during the world crisis: why firms prefer to make a deal, why firms merge in the time of crises, why the process of merge and acquisition is not always as good as it can be as a result.

4. Тhe most important aspects of effective transactions • Find the purpose of the transaction • Not be blinded by arrogance • The effect of synergy • Analyze all cons and pros of future deal • Difference between cultures of companies

5. Dynamics of mergers and acquisitions in the world the world leaders on amount of М&А transactions are raw industries and power industry); banking sector and industries don't have an opportunity to develop only at the expense of own means ; financial sector was in the lead on amount of transactions in the USA, Central and Eastern Europe, having constituted about 25% of all world value of М&А transactions; - lack of available financing - need to salvage core business - a low asset cost

6. World M&A transactions

7. M&A in the Republic of Belarus Minuses: The most attractive in the Republic of Belarus for investors are: • financial sector (Internal, Russia), • Retail (Internal, Poland, Russia), • food industry (Internal) • financial instability • toughenings of fight against import • complexity of national system of pricing • a significant role of the state

9. Suggestions for improvement of sectors in Belarus Banks and financial organizations - consider rates that banks could develop - enter the tax holidays or the reduced tax rate for foreign investors IT - lower taxes - train programmers within the country Real Estate - review the strategy of creation of real estate objects - attraction of bank investments in a real estate construction Wholesale and retail trade - increase efficiency of network retail trade - simplify conditions of an entrance of small retail trade on the market Food and drinks - maintain interest Production - continue to develop mechanical engineerin - open affiliates, where mashines can be constructed from delivered spare parts

10. Telecommunications and media - expand the client base - sell advertizing through a cooperation with the new companies Pharmaceutics and health care - organization of biotechnological parks and incubators - support the Belarusian drug manufacturers - search for foreign partners and promotion of products on the foreign markets Services - strengthen show business Energy and extraction of resources - develop renewable power Transport and logistics - increase in efficiency of logistic schemes by large transportation companies - develop logistics and make it more profitable for mining companies

11. Thank you for your attention!