Evaluation of the applicability of the best practices in problematic stages of mergers and acquisitions process in Russian business environment

Abstract

Objectives of the study:

Due to the author personal interest in mergers and acquisitions (M&A), the main objective was to identify the key challenges Finnish companies have in acquiring Russian targets, and identify methods in which these challenges should be addressed. In essence, the objective is to detect the best practices in executing acquisitions in Russia.

Methodology:

As the research was qualitative in nature, primary data was collected via semi-structured interviews with industry experts. Secondary data was collected from academic articles and practitioner-oriented literature. Academic articles provided the foundation for the research, while the practitioner-oriented literature added depth and allowed contrast to the professional world.

Results of the study:

Main problems were related to finding targets and target information, negotiations and country-specific issues (e.g. bureaucracy). Also, post-acquisition integration was seen as the main problematic stage in the M&A process. Within it - issues such as lack of availability of competent integration team, executives' experience, and integration focus - especially to cultural issues were seen problematic. In terms of best practices to tackle these matters, issues such as ensuring availability of competent integration managers, hiring assisting professionals (e.g. advisors), and ensuring sufficient time for integration, were considered fundamental in order to secure successful integration.