Akquisitionscontrolling in der Praxis – Eine theoriegeleitete Fallstudie

Jens Madrian (), Thilo Kröber () and Klaus Schulte ()

Metrika: International Journal for Theoretical and Applied Statistics, 2006, vol. 17, issue 3, 345-362

Abstract: How should the value of a company be measured, and what tools and valuation methods should be used? What are the drivers in M&A that create a successful and value creating transaction? It is not uncommon in M&A to use perpetuity growth rates when calculating the terminal value. Generally, we do not share this view as it neglects the incremental capital investments (ROIC) in fixed assets or working capital necessary to enable growth. To avoid overestimating the terminal value it is more appropriate that returns on incremental capital investment converge to the cost of capital (WACC). The main reason commonly mentioned in literature for value destruction in M&A valuations is mistakes in the post-merger-integration phase. On many occasions – and in literally all industry sectors – synergies are valued quite optimistically. As a result, the transaction value paid is too high, so there is no real chance to create additional value in the first place. These, and other aspects of M&A’s will be addressed and discussed in this case study. The study will be based on our experiences in M&A-transactions, supported by the valuation basics and methodologies. The case study will draw conclusions, provide recommendations and possible solutions. Copyright Springer-Verlag 2006

Date: 2006
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DOI: 10.1007/s00187-006-0007-7

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