Mergers and acquisitions: role in socio-economic development

The article postulates the title thesis that mergers and acquisitions contribute to significant economic and social transformations that can have both positive and negative effects on various aspects of socio-economic development. The possible economic effects of M&As are differentiated by their impact on either macroeconomic or microeconomic indicators. Thus, as aspects of influence on macroeconomic indicators, the potential of M&As to contribute to economic growth and development, to promote industry consolidation and market structure formation is revealed, but the possibility of negatively affecting the dynamism and competitiveness of markets through market concentration is noted. As aspects of the impact on microeconomic indicators, the potential at the company level to significantly improve business efficiency and stimulate its growth through the use of synergies, as well as tax aspects and the use of innovative intellectual activity are revealed. In considering the social implications of M&As, we examine their impact on employment, wages, labor relations, power structures and cultural dynamics of society. Based on the research presented, the author concludes that corporations, when assessing the effectiveness of upcoming M&A transactions, should go beyond their purely financial aspects and consider their broader economic, social and environmental impacts.