INFORMATION FLOWS IN MERGERS AND ACQUISITIONS

Abstract

Abstract. Information component of modern mergers and acquisitions plays an increasingly
important role in achieving synergies. Authors analyzed the process of mergers and acquisitions
in the context of information exchange between participants. The intensification of information
flows motion in such transactions is evidenced by increasing role of implemented
technological processes. Starting from this premise the authors proposed to investigate information
flows through the main stages of mergers and acquisitions and their impact on the effectiveness
of information and economic exchange.
Economic benefits received as a result of the information cycle by participants of information
exchange indicate that synergies from mergers or acquisitions were achieved. The authors
consider this as one of the conditions for the existence of information and economic exchange
between the parties in such transaction. In this case, the processes of formation, direction, and
motion of information flows through stages of information cycle can be described as a sequence
of establishing and developing economic relations between the participants of information and
economic exchange.
Key words: Mergers and Acquisitions, synergies, information flaws, information and economic
exchange, information cycle.