Why and how healthy enterprises invest in distressed companies? Theoretical background of motivation and market statistics of distressed investments on global M&A market
DOI:
https://doi.org/10.18559/ref.2018.2.2Keywords:
opportunities, mergers and acquisitions, strategic management, competitive position, distressed assetsAbstract
The utilisation of opportunities by enterprises as the main factor in their development has been the subject of many researchers’ deliberations in recent years. In the author’s perspective, the processes of mergers and acquisitions, in particular, related to investments in distressed assets are a very clear reflection of the strategy of entrepreneurial opportunities utilisation in both passive and creationist approaches.
In this paper, the author tries to identify areas where the theory of entrepreneurial opportunities as a part of management studies are reflected in mergers and acquisitions operations. By applying distressed asset investments to the theory of entrepreneurial opportunities, a more in-depth understanding of the motivation of enterprises to make mergers and acquisitions is possible. Additionally, by referring to market practice and empirical research, the author intends to present arguments that allow combining the elements of the leading theories concerning management through opportunities, and this type of investment is a crucial part of modern company management strategy.
Downloads
Downloads
Published
Issue
Section
License
The Research Papers in Economics and Finance (REF) is committed to open access. All of the REF` s paper are free to access immediately from the date of publication. There are no author charges, known as APCs, before release, and no charge for any reader to download articles.
The Creative Commons Attribution 4.0 International license (CC BY 4.0) applies to articles published in Research Papers in Economics and Finance from Vol. 4, No. 3, 2020 to present. This license is acceptable for Free Cultural Works. You are free to share and adapt. You must give appropriate credit, provide a link to the license, and indicate if changes were made.
The Attribution-NonCommercial 4.0 International license (CC BY-NC 4.0) applies to articles published in Research Papers in Economics and Finance up to Vol. 4, No. 2, 2020 inclusive. You are free to share and adapt. You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may not use the material for commercial purposes.