Thesis
Valuation and financing methods for mergers and acquisitions
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 1986
- Thesis identifier
- T7301
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- Mergers and acquisitions are part of the many different activities that can be found under the corporate restructuring umbrella. Different motivations for their occurrence have been suggested in the literature and consequently the last one or so decade has witnessed too much empirical work 'on the impact of merger decisions on the shareholders' wealth'. However, at the same time, not much attention has been given to the question of the appropriate 'valuation and financing methods' used by managements of acquiring companies. The financial literature presents both simple and sophisticated discounted cash flow and related analytical techniques. But from the practical point of view, the general criticism against managements of acquiring firms is that they tend to use less sophisticated analytical methods. Indeed, unlike most internal investment proposals, mergers and acquisitions can be viewed as being much more complicated and, therefore, an understanding of the underlying problems related to valuation and financing methods may prove useful in the decision-making process. This research examines the various valuation and financing methods presented in the theoretical and empirical literature with a view to establishing their strengths and inadequacies in decision making. Several issues are also considered in the light of the efficient market hypothesis.
- Advisor / supervisor
- Capstaff, John
- Resource Type
- DOI
Relations
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