The Mergers and Acquisitions Impact Analysis of the Small and Medium-sized Companies Financial Perfomance

The paper presents a theoretical analysis of mergers and acquisitions, a review of studies on evaluating the effectiveness of transactions, assessing their impact on the financial performance of companies and the participation of small and medium-sized businesses in such transactions. As an empirical study, an analysis was conducted of 34 mergers and acquisitions involving Russian small and medium-sized entrepreneurs in the telecommunications and metallurgical industries, as well as with the participation of state-owned companies in the period from 2020 to 2023. using comparative analysis, horizontal analysis of financial statements of companies and regression analysis to identify factors affecting the effectiveness of companies. As a result, it was revealed that, in general, the efficiency and financial performance of SME's improves after participating in transactions, the growth of financial indicators is influenced by the share of the acquired company and belonging to a particular industry. The results obtained are useful for both large companies and SME's that are going to participate in a transaction to choose the most appropriate strategy. However, companies should pay attention to other factors that are not taken into account in this work, as well as that the results of this study do not apply to all organizations.