THE NEW APPROACH TO ASSESSING THE SYNERGISTIC EFFECT OF DIVERSIFICATION

Анотація

The article discusses various examples of the diversification of enterprises both by expanding production through the creation of new production lines, and through the mergers and acquisitions of ready-made enterprises. Suggested that the most successful is diversification, aimed to the production of goods that complement each other. It is in the production of complimentary goods that the occurrence of a synergistic effect is most likely. Moreover, in determining the complementarity, it becomes possible to determine the trend of the company's further development and changes in the volume of its revenue. The article also presents and describes all the most common methods for assessing the feasibility of a decision on diversification and points to their advantages and disadvantages. Analyzed various criteria for assessing the feasibility of a diversification, and proposed complementarity of goods, determined using the coefficient of elasticity of demand, as the main criterion for deciding whether to complete merger or acquisition. It's proved that in addition to assessing the feasibility of diversification, it is also necessary to have a tool that will allow to assess the amount of synergistic effect to which it will lead. None of the existing methods provides such an opportunity. It is proposed to use for this the complementarity multiplier, which will make it possible to predict the change in demand for the company's products after diversification, and therefore to evaluate the future synergistic effect. The article also presents the formula of the complementarity multiplier, which allows to predict the trend of change in income after such transactions. By the example of real companies, it has been proved that diversification, which allows to achieve a synergistic effect, leads to an increase in revenue. Article also presents the idea that insists on the fact that the return on investment is most likely when a synergistic effect occurs, which will be able to cover the costs by increasing revenues. That is, when assessing the feasibility of diversification, we should talk about the assessment of the synergistic effect to which it will lead.

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