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Valuing Dynamic Capabilities-Based Synergies with Real Options

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  • Andrejs Čirjevskis

    (Department of Business, RISEBA University of Applied Sciences in Business, Arts, and Technology, Meza Street 3, LV-1048 Riga, Latvia)

Abstract

Acquisition-based dynamic capabilities have become well established as a new imperative for organizing mergers and acquisitions (M&A) processes. However, understanding the full benefits and possible limits of real options applications to measure a dynamic capability-based synergy in M&A deals remains a challenge. This paper draws on real options theory to explore some of these benefits and limits to value a synergy in two highly strategic M&A deals. More specifically, the author develops the proposition that justifies the role of dynamic capabilities as antecedents of the success of M&A deals in the information and communications technology industry and demonstrates real options application to measure M&A synergies.

Suggested Citation

  • Andrejs Čirjevskis, 2021. "Valuing Dynamic Capabilities-Based Synergies with Real Options," JRFM, MDPI, vol. 14(2), pages 1-14, February.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:2:p:69-:d:495271
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    References listed on IDEAS

    as
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    Cited by:

    1. Andrejs Čirjevskis, 2021. "Exploring the Link of Real Options Theory with Dynamic Capabilities Framework in Open Innovation-Type Merger and Acquisition Deals," JRFM, MDPI, vol. 14(4), pages 1-16, April.

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