Nastych M.A.National Research University Higher School of Economics, Moscow, Russian Federation mnastych@hse.ru
Importance The paper analyzes the efficiency of economic integration of firms. Efficiency is standard requirements for profitable integration (non-decreasing total profit) in microeconomics, theory of firm, and theory of industrial organization, or non-negativity of synergy in the theory of corporate finance and business valuation theory. Objectives The aim is to define a fair value of companies within the economic integration. The definition is necessary to take into account the effect of external interaction in competitive environment on the value of business, determine the volume of shares exchanged in mergers and purchase price in takeovers, and decide on business splitting. Methods The methodology includes the use of tools of the cooperative game theory to determine the profitability of integration for each participating firms, considering its non-decreasing share in the fair value of the entire integration. Results I formalize the notion of economic integration profitability and fair value of companies using the tools of the cooperative game theory; prove the interpretation of the cooperative game solution for economic integration as a method to calculate fair value of companies based on its external cooperative interaction with contractors. The paper includes an example of such economic integration in the aviation industry. Conclusions and Relevance The proposed approach to the analysis of economic integration enables to estimate the contribution of each individual firm. The article is of practical importance for companies carrying out joint R&D, supply chains, alliances, holdings, companies participating in M&A deals, and investment and consulting companies providing services within such deals.
Keywords: economic integration, M&A, fair value, cooperative game, business value
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