TY - JOUR
T1 - From “Strategic Fit” to Synergy Evaluation in M&A Deals
AU - Mocciaro Li Destri, Arabella
AU - Picone, Pasquale Massimo
AU - Minà, Anna
PY - 2012
Y1 - 2012
N2 - The aim of this paper is to grasp the processes underlying the genesis and assessment of synergies in M&A deals. We proceed to an in-depth scrutiny of the foundations of synergies using Porter’s model of the value chain. A discernment of the nature of synergies and the mode of their emergence is helpful to clarify to what extent and under which boundary conditions it is appropriate to apply the DCF or the real option techniques for evaluating each type of synergy. Combining both financial tools, the methodology suggested for evaluating the synergies is able to: evaluate projects of M&As, orient the selection of target firms and the definition of the premium of acquisition, and drive the integration processes.
AB - The aim of this paper is to grasp the processes underlying the genesis and assessment of synergies in M&A deals. We proceed to an in-depth scrutiny of the foundations of synergies using Porter’s model of the value chain. A discernment of the nature of synergies and the mode of their emergence is helpful to clarify to what extent and under which boundary conditions it is appropriate to apply the DCF or the real option techniques for evaluating each type of synergy. Combining both financial tools, the methodology suggested for evaluating the synergies is able to: evaluate projects of M&As, orient the selection of target firms and the definition of the premium of acquisition, and drive the integration processes.
UR - http://hdl.handle.net/10447/79327
UR - http://www.cjasr.com/images/manuscripts/December 20121/CJASR-12-14-177.pdf
M3 - Article
VL - 1
SP - 25
EP - 38
JO - CASPIAN JOURNAL OF APPLIED SCIENCES RESEARCH
JF - CASPIAN JOURNAL OF APPLIED SCIENCES RESEARCH
SN - 2251-9114
ER -