Development and Implementation of M&A Game: A Gaming Simulation to Understand What Affects the Premium in M&A

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  • M&Aにおける適切な買収プレミアムの算出のためのゲーミングシミュレーション開発と実践
  • M&A ニ オケル テキセツ ナ バイシュウ プレミアム ノ サンシュツ ノ タメ ノ ゲーミングシミュレーション カイハツ ト ジッセン

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Abstract

<p>Merger and Acquisition (M&A) is currently booming. While M&A is an effective strategy, it also poses a considerable risk for companies. As the premium increases, so too does the risks of the failure. However, the clear reasons for difficult to control variables and compare in M&As. Thus, in this paper, we simulated M&A activity as gaming and aim to reveal reasons the premium increases. As a result, we were able to show a new way to explore the reason of the increase of the premium. In the simulation we conducted, we revealed that the number of buyers, the type of M&A (contest vs non-contest) and the news influence the premium. This result implies that non-contest and 1on1 M&A, which is commonly used by Japanese companies, is more beneficial to acquiring companies than acquired ones. Also, we conducted questionnaire and found that this gaming has an educational effect especially for M&A beginners.</p>

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