Pecularities of bankruptcies, restructuring, mergers and acquisitions in Lithuania in the post-crisis period

Abstract

The processes of bankruptcy and restructuring of enterprises used to raise and continue to raise a wide range of controversial assessments. The article examines statistics of the bankruptcy and restructuring of enterprises, problems and ways of their resolution and analyses mergers and acquisitions and their causes. The majority of enterprises merge in order to expand their activities and to diversify the risks associated with such activities. Smaller enterprises, which are incapable of competing in the international market, are forced to bring themselves under the protection of large international enterprises. The mergers and acquisitions of enterprises take place also in order to capture new technological opportunities, to enhance an enterprise's trademark, to achieve a variety of synergistic effects, economies of scale and management, improved allocation of resources and market power gains and to attain a number of other goals. Thus, in times of globalisation and the free movement of capital the issues of mergers and acquisitions are becoming increasingly topical due to the emerging opportunities of seeking alliance or acquisition in international markets. The aim of this research is to identify peculiarities of restructuring, mergers and acquisitions in Lithuania in the post-crisis period. The object of the research is the bankruptcy and restructuring of enterprises as well as, mergers and acquisitions of enterprises in the Baltic States and European countries. Research methods: analysis of statistical data and scientific literature.