Investment audit in the provision management of the mergers and acquisitions

Published Online: Sep 13, 2023

Ihor FEDOROV

Email: i.fedorov@knute.edu.ua
State University of Trade and Economics, Kyiv, Ukraine

Karina NAZAROVA

Email: k.nazarova@knute.edu.ua
State University of Trade and Economics, Kyiv, Ukraine

Volodymyr HORDOPOLOV

Email: v.hordopolov@knute.edu.ua
State University of Trade and Economics, Kyiv, Ukraine

Mariia NEZHYVA

Email: m.nezhyva@knute.edu.ua
State University of Trade and Economics, Kyiv, Ukraine

Viktoriia MYSIUK

Email: v.mysiuk@knute.edu.ua
State University of Trade and Economics, Kyiv, Ukraine

Viktor KOVAL

Email: victor-koval@ukr.net
Izmail State University of Humanities, Izmail, Ukraine

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Abstract:

This research is relevant because mergers and acquisitions (M&A) is one of the most complex and risky types of business operations that require significant investments. An investment audit is an important part of the M&A process, which allows investors to assess the risks and benefits of investing in a particular company, and helps ensure that the M&A does not lead to unforeseen problems or financial losses. The main purpose of conducting research is to assess the potential returns and risks associated with investments in M&A, which is becoming an increasingly popular method of conducting business operations. Therefore, the importance of an investment audit in M&A assurance management is increasing, as it helps to reduce risks and ensure the successful execution of M&A. Objectives: The purpose of the article is to discuss the further development of investment audit provisions and their impact on the results of the public interest enterprise. Results: Conducting an investment audit is crucial in the provision management of mergers and acquisitions (M&A) to ensure effective decision-making and maximize returns. By conducting a comprehensive investment audit, acquirers can gain valuable insights into the target company's strengths, weaknesses, and growth potential, enabling them to make informed investment decisions, negotiate favorable terms, and develop integration strategies that enhance value creation and minimize risks. Ultimately, a thorough investment audit plays a pivotal role in the provision management of M&A by providing a solid foundation for successful post-merger integration and long-term business growth. Conclusions: In addition to the direct audit of M&A operations, other types of audit can be conducted: legal audit; environmental audit; organizational audit; technological audit. In the face of various challenges confronting business leaders, M&A, especially portfolio optimization, will be a crucial tool for repositioning companies, driving growth, and achieving long-term sustainable outcomes.

Keywords:

investment audit, M&A, enterprise of public interest, financial market

Pages:

468-479

JEL Classification:

Q01, Q56, M21, М40, М42, М49

DOI:

https://doi.org/10.46656/access.2023.4.3(10)

How to cite:

Fedorov, I., Nazarova, K., Hordopolov, V., Nezhyva, M., Mysiuk, V., Koval, V. (2023). Investment audit in the provision management of the mergers and acquisitions. Access to science, business, innovation in the digital economy, ACCESS Press, 4(3), 468-479, https://doi.org/10.46656/access.2023.4.3(10)

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