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

Abstract

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.