Methods for Valuation of a Target Company at the M&A Market

D 2012

Methods for Valuation of a Target Company at the M&A Market

SEDLÁČEK, Jaroslav, Alois KONEČNÝ and Zuzana KŘÍŽOVÁ

Basic information

Original name

Methods for Valuation of a Target Company at the M&A Market

Authors

SEDLÁČEK, Jaroslav (203 Czech Republic, guarantor, belonging to the institution), Alois KONEČNÝ (203 Czech Republic, belonging to the institution) and Zuzana KŘÍŽOVÁ (203 Czech Republic, belonging to the institution)

Edition

1. vyd. Montreux, MATHEMATICAL METHODS for INFORMATION SCIENCE and ECONOMICS, p. 255-260, 6 pp. 2012

Publisher

WSEAS Press

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50200 5.2 Economics and Business

Country of publisher

Switzerland

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

RIV identification code

RIV/00216224:14560/12:00058028

Organization unit

Faculty of Economics and Administration

ISBN

978-1-61804-148-7

Keywords in English

mergers and acquisitions; planning; implementation; integration; due diligence; target firm; methods of valuation; discounted cash flow method

Abstract

V originále

Mergers and acquisitions are a used and respected alternative to a company’s organic growth and they are a significant channel of capital redistribution. The actual process of company combinations is performed in more possible forms and it is affected by a number of factors of local, regional, national and global character, which may not lead to a successful end. It is an investment that does not occur in a company’s life very often. The process can be divided into three stages: preparation and plan; implementation; and integration. The key factor of the first stage is the establishment of the value of the target company as a basis for successful negotiations. The implementation stage is a stage of analyses. At the third stage the acquiring business manages the demanded changes in the acquired business. The aims of this paper are to analyse valuation methods and outline the procedure for using the discounted cash flow method adapted to the conditions of the Czech M&A market. Especially risk factors and their reflection in the valuation method are considered.

Links

GAP403/11/0447, research and development project

Name: Analýza daňových a účetních postupů při fúzích

Files attached

MMISE-43_clanek_sbornik.pdf

Request the author's version of the file

Citovat

SEDLÁČEK, Jaroslav, Alois KONEČNÝ and Zuzana KŘÍŽOVÁ. Methods for Valuation of a Target Company at the M&A Market. In Nikos Mastorakis, Elena Zaitseva, Dragan Randjelovic, Kevin Kam Fung Yuen, Claudia-Georgeta Carstea, Sorinel Capusneanu, Alin Larion. MATHEMATICAL METHODS for INFORMATION SCIENCE and ECONOMICS. 1st ed. Montreux: WSEAS Press, 2012, p. 255-260. ISBN 978-1-61804-148-7.

@inproceedings{1081063,
   author = {Sedláček, Jaroslav and Konečný, Alois and Křížová, Zuzana},
   address = {Montreux},
   booktitle = {MATHEMATICAL METHODS for INFORMATION SCIENCE and ECONOMICS},
   edition = {1.},
   editor = {Nikos Mastorakis, Elena Zaitseva, Dragan Randjelovic, Kevin Kam Fung Yuen, Claudia-Georgeta Carstea, Sorinel Capusneanu, Alin Larion},
   keywords = {mergers and acquisitions; planning; implementation; integration; due diligence; target firm; methods of valuation; discounted cash flow method},
   howpublished = {tištěná verze "print"},
   language = {eng},
   location = {Montreux},
   isbn = {978-1-61804-148-7},
   pages = {255-260},
   publisher = {WSEAS Press},
   title = {Methods for Valuation of a Target Company at the M&A Market},
   year = {2012}
}

TY  - JOUR
ID  - 1081063
AU  - Sedláček, Jaroslav - Konečný, Alois - Křížová, Zuzana
PY  - 2012
TI  - Methods for Valuation of a Target Company at the M&A Market
PB  - WSEAS Press
CY  - Montreux
SN  - 9781618041487
KW  - mergers and acquisitions
KW  - planning
KW  - implementation
KW  - integration
KW  - due diligence
KW  - target firm
KW  - methods of valuation
KW  - discounted cash flow method
N2  - Mergers and acquisitions are a used and respected alternative to a company’s organic growth and they are a significant channel of capital redistribution. The actual process of company combinations is performed in more possible forms and it is affected by a number of factors of local, regional, national and global character, which may not lead to a successful end. It is an investment that does not occur in a company’s life very often. The process can be divided into three stages: preparation and plan; implementation; and integration. The key factor of the first stage is the establishment of the value of the target company as a basis for successful negotiations. The implementation stage is a stage of analyses. At the third stage the acquiring business manages the demanded changes in the acquired business. The aims of this paper are to analyse valuation methods and outline the procedure for using the discounted cash flow method adapted to the conditions of the Czech M&A market. Especially risk factors and their reflection in the valuation method are considered.
ER  -

SEDLÁČEK, Jaroslav, Alois KONEČNÝ and Zuzana KŘÍŽOVÁ. Methods for Valuation of a Target Company at the M\&{}A Market. In Nikos Mastorakis, Elena Zaitseva, Dragan Randjelovic, Kevin Kam Fung Yuen, Claudia-Georgeta Carstea, Sorinel Capusneanu, Alin Larion. \textit{MATHEMATICAL METHODS for INFORMATION SCIENCE and ECONOMICS}. 1st ed. Montreux: WSEAS Press, 2012, p.~255-260. ISBN~978-1-61804-148-7.

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