M&A transactions: Introduction, role of valuation

M&A transakce: Úvod, role ocenění

Lukáš Hruboň

Oceňování, 2022, vol. 15, issue 3, 23-44

Abstract: This article elaborates on motives and determinants of the M&A market and application of valuation techniques in context a standard two-round M&A process, respectively. The author argues that both a seller and a buyer use valuation exercise namely to determine minimum and maximum acceptable price and to support price negotiations. Empirical studies show that an investor usually overpays in situations of: (i) unreasonably inflated expectations on positive synergies, (ii) competitive M&A process / target company actively traded in stock exchange and (iii) lack of planning and qualified human resources both during an acquisition project and a subsequent integration phase.

Keywords: Company valuation; Mergers & acquisition; Synergies; Control premium; Ocenění podniku; Fúze a akvizice; Synergie; Kontrolní prémie (search for similar items in EconPapers)
JEL-codes: G30 G34 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.18267/j.ocenovani.280

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