Open AccessDue Diligence Driving the Success of Mergers and Acquisitions in Macedonia
Author(s) -
Dushica Stevchevska Srbinoska
Publication year - 2016
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v6i2.9618
Subject(s) - due diligence , macedonian , diligence , business , mergers and acquisitions , european union , database transaction , set (abstract data type) , process (computing) , accounting , industrial organization , international trade , finance , computer science , psychology , social psychology , linguistics , philosophy , programming language , operating system
The act of due diligence is of vital importance when considering the possibility to enter the Macedonian market through merger and/or acquisition transactions. In this paper, I discuss that due diligence helps reduce potential risks or even results with curtailing the transaction as most of the Letters of intent never come to life. Many Macedonian entities, both public and private, operate in an environment considerably different to the European Union economies, a fact that inspires many questions with potential investors, especially in those who come from the European Union. If proper preparation takes place, and the expectations and processes are duly taken into account, successful merger and/or acquisition can be conducted in the Republic of Macedonia in spite of facing numerous difficulties. Finally, I discuss that several suggestions/factors can maximize the chances of success, demonstrated with the example of due diligence process set-up prior to the one.Vip merger that marked the Macedonian communications industry in 2015.