Oceňování 2022, 15(3):23-44 | DOI: 10.18267/j.ocenovani.280

M&A transactions: Introduction, role of valuation

Lukáš Hruboň
Ing. Lukáš Hruboň, Ph.D., ACCA, znalec ve specializaci Oceňování obchodních závodů

This article elaborates on motives and determinants of the M&A market and application of valuation techniques in context a standard two-round M&A process, respectively. The author argues that both a seller and a buyer use valuation exercise namely to determine minimum and maximum acceptable price and to support price negotiations. Empirical studies show that an investor usually overpays in situations of: (i) unreasonably inflated expectations on positive synergies, (ii) competitive M&A process / target company actively traded in stock exchange and (iii) lack of planning and qualified human resources both during an acquisition project and a subsequent integration phase.

Keywords: Company valuation; Mergers & acquisition; Synergies; Control premium
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Článek je zpracován jako jeden z výstupů výzkumného projektu Fakulty financí a účetnictví VŠE Praha, který je realizován v rámci institucionální podpory VŠE IP100040.

JEL classification: G30, G34

Published: January 30, 2023  Show citation

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Hruboň, L. (2022). M&A transactions: Introduction, role of valuation. Oceňování, 15(3), 23-44. doi: 10.18267/j.ocenovani.280
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