METODI FINANSIRANJA MERDŽERA I AKVIZICIJA
METHODS OF FINANCING MERGERS AND ACQUISITIONS

Summary/Abstract: A company that intends to carry out external growth through merger or acquisition it is obliged to provide certain funds for financing the mentioned growth strategy. What are the necessary funds depends on the size and potential of companies which are the subject of integration, the estimated value of the target company and the expected premium amount on offer. Each of the methods of financing of which are decided by the company has its own advantages and disadvantages. Accordingly, the method of financing affect the value of which will be located in the possession of the owner of both companies. Will this value increase or decrease depends on the quality and financing of a business combination, or the division of the expected value, created integration between the shareholders of integrated companies. Comparing the state of the stock market and payment methods for the realization of business integration is evident that companies use stock as the dominant means of payment in periods of high stock price, or when it takes off the stock market.

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