Analysis of the impact on the value of companies in the mining industry during M&A and their synergistic effects

Anna Harumová, Eduard Hyránek

Analysis of the impact on the value of companies in the mining industry during M&A and their synergistic effects

Číslo: 3/2023
Periodikum: Acta Montanistica Slovaca
DOI: 10.46544/AMS.v28i3.04

Klíčová slova: Merger, acquisition, enterprise value, exhaustible resources, capitalization rate, synergistic effects, mining companies

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Anotace: In this article, we analyze the effects on the value of companies in

the mining industry during the corona crisis and in the post-covid
period and on the possibility of carrying out planned mergers or
acquisitions. As a model, we chose two companies operating in the
given industry and investigated what factors affect the calculation of
their market value. Available data from the financial statements of
these mining companies (KSR – Kameňolomy SR, s. r. o., Eurovia –
Kameňolomy SR, s. r. o.) for the years 2018 to 2022 were used for
the calculation, based on which the planned data for the years 2023
to 2027 were then determined. Exploring the possibility of entering
a partnership with another company brings many opportunities but
also risks. In conclusion, we analyze the number and value of
mergers occurring between 2015 and 2021 in Slovakia, within the
Visegrad 4 group, in Europe and in the world. In conclusion, we will
evaluate the development of mergers and acquisitions in the years
2022 and 2023 in Central and Eastern Europe, especially Slovakia.
Finding a reliable partner is difficult, and there is no definite guide,
but it is possible to acknowledge when and why doing business on a
partnership basis is more advantageous and efficient if the merger is
professionally prepared.