Valuing the Merger and Acquisition Regarding the Existence of the Merged Company

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  • 被買収企業の存続期間を考慮した買収価値の評価
  • 研究ノート 被買収企業の存続期間を考慮した買収価値の評価
  • ケンキュウ ノート ヒバイシュウ キギョウ ノ ソンゾク キカン オ コウリョ シタ バイシュウ カチ ノ ヒョウカ

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Abstract

<p>Because the M&A often requires huge amount of investment, it is very important to evaluate the economic value of the investment. Various financial techniques are developed for the valuation, however, they are usually referred as an ambiguous numbers for the use of a quantitative judgment. These techniques tend to be referred without knowing its theoretical limitations so that the results often would not reflect the actual M&A situations.</p><p> This study presents the technique for valuing the M&A regarding the existence of the merged company. In Section 1, M&A process and valuing framework is described. Section 2 refers to the free cash flow approach and describes the issue that the economic value of the merger would gradually decreases when the surplus cash is retained at the merged company. In Section 3, a financial technique is developed by paying attention to the cash obtained from or retained in the merged company.</p>

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