Typology of Key Mergers and Acquisitions Strategies in the Process of Becoming a Market Leader

Abstract

Today, businesses are actively optimizing their financial structures, which places new demands on investors and managers. These professionals must execute transactions while considering the specific characteristics of the target market. This study's aim is to develop a typology of key strategies for cross-border mergers and acquisitions (M&As), which are common in today's competitive financial market environment. It relies on the main indicators of foreign direct investment (FDI) to monitor M&A activity in both developed and developing economies. By employing this strategy, the study was able to assess the competitive state of financial markets and provide a basis for managerial investment decisions. Using analytical methods, as well as micro-and macroeconomic approaches, the study analyzed the M&A process in the context of modern business practices. It then constructed a universal typology of key strategies based on the findings. The study highlights the importance of FDI inflows in M&As for driving growth, facilitating technology transfer, and promoting market development. This is particularly relevant in light of the pandemic and the distinctions between developed and developing markets. The practical value of the proposed typology is that it considers global policy priorities and the dynamic capabilities of national economies, offering a universal approach to investment. The results suggest that successful M&As, with an appropriate choice of strategies, lead to a robust economy. Further, the study improves our knowledge of global financial markets and business strategies, enhancing professional engagement with investment and capital management. The research contributes to our understanding of the conceptual structure of M&As within the broader context of global politics and financial integration.