| Name of the risk group in accordance with the project implementation stage |
Types of risks included in the relevant group |
| 1. Risks at the stage of the integration strategy preparation |
a) the risk corresponding to the method selection of the company growth. Company growth, in connection with the chosen merger strategy, is in some cases inexpedient for strengthening the firm position; |
| b) risks associated with choosing the integration form; |
| c) risks arising from potential partners selection (associated with a lack of information about them); |
| d) the risk of incorrect determining the company status (due to insufficient information on the affairs state in the industry, the market value of the company assets). |
| 2. Risks associated with the merger strategy progress |
a) risks associated with stockholders capital, that is the reduction in the value of the merged company in comparison with the individual companies total value; |
| b) risks associated with changes in the ratio of total capital - the owners risk losing a significant part of the control over the merged company. |
| 3. Risks associated with enterprise management resources |
a) the risk of staff cuts, including leading specialists and managers. As a result of this process, the level of scientific and technical potential of the newly created integrated education decreases; |
| b) disaffected risks, that is negative attitude of employees to the changes. This may lead to a deterioration of the merged company social climate, a decrease in productivity. |
| 4. Risks associated with the enterprise fund |
a) risks arising from the combination and redistribution of financial flows that worsen the financial situation of either one or several transaction parties; |
| b) the risk of increasing the tax burden on the merged structure (both due to the direct increase in tax payments, and to the loss of tax privileges of participants); |
| c) risks of reducing the profit rate (in the case of integration with unprofitable enterprise); |
| d) risks associated with changes in the enterprise size, the negative scale effect; difficulties in managing a new integrated structure, the problem of redistributing received income between individual links, etc. |
| 5. Risks associated with changes in the macro environment company changes |
a) the risk of positive effect short payment from the planned transaction due to the impact of a downturn in the industry or a financial crisis (macroeconomic instability); |
| b) risk associated with destabilization in the securities market due to high inflation and other non-transaction factors; |
| c) the risk of technological changes in the industry being able to make one of the integrated business links unnecessary or ineffective, etc. (Chuveleva, 2015). |
