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A Survey On Business Evaluation Methods Used In Mergers

Author

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  • Jurcau Anca Sabina

    () (Universitatea Babes-Bolyai Cluj-Napoca, Facultatea de Stiinte Economice si Gestiunea Afacerilor)

  • Andreicovici Ionela Irina

    () (Universitatea Babes-Bolyai Cluj-Napoca, Facultatea de Stiinte Economice si Gestiunea Afacerilor)

Abstract

In mergers, a subject that arouses controversies between the leaders of the companies involved in the transaction is the determination of the exchange ratio. The basis of its determination is represented by the application of business evaluation methods that are completed by a negotiation process. In order to better understand the major aspects regarding this issue, this article presents a literature review of the main business evaluation methods used to determine the exchange ratio in merger transactions. We concluded by showing the context of use and the application conditions of the most used methods.

Suggested Citation

  • Jurcau Anca Sabina & Andreicovici Ionela Irina, 2010. "A Survey On Business Evaluation Methods Used In Mergers," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 878-884, December.
  • Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:878-884
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    File URL: http://anale.steconomiceuoradea.ro/volume/2010/n2/140.pdf
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    References listed on IDEAS

    as
    1. Trahan, Emery A. & Gitman, Lawrence J., 1995. "Bridging the theory-practice gap in corporate finance: A survey of chief financial officers," The Quarterly Review of Economics and Finance, Elsevier, vol. 35(1), pages 73-87.
    2. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    business evaluation methods; mergers; exchange ratio;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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