Mergers and acquisitions: role in socio-economic development

Today, the mergers and acquisitions market is stagnating, which is due to the geopolitical tensions caused by the imposition of sanctions. Also, the COVID-19 pandemic has affected this market, and therefore many investors refrain from participating in large transactions. The market will start to grow in the future, because the pent-up demand accumulated since the introduction of sanctions and the pandemic period will begin to be released, but time is needed for full recovery. This is very important because mergers and acquisitions are one of the progressive ways to increase the value of the company, to acquire the necessary competitive advantages. This article draws a conclusion about the importance of mergers and acquisitions in economic development, which is confirmed by the calculation carried out by the authors.