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Vulnerable Company’s Triumphs in M&A Negotiation under the Impact of COVID-19 — An Empirical Study of Asian Companies

Author

Listed:
  • Tsai-Hsin Cheng

    (National Sun Yat-sen, University College of Management, Taiwan)

  • Chung-Jian Huang

    (National Kaohsiung, University of Hospitality and Tourism, Taiwan)

  • Chao-Hsien Sung

    (National Pingtung, University of Science and Technology, Taiwan)

  • Yi-Chang Huang

    (National Sun Yat-sen University, Taiwan)

Abstract

The worldwide lockdown caused by COVID-19 has led to the complete suspension of shipping, land transportation, and aviation. As a result of the redistribution of global resources, governments have recently advocated acquisitions and mergers with strategic alliances and vertical integrations to revitalize the economy. This study aims to investigate how the mergers and acquisitions (M&A) were negotiated and how the equilibrium price was achieved with game theory and information economics in agricultural and fishery biotechnology industry. The findings in the present study propose that by adopting investment valuation (asset-based approach, revenue method, market method) and presenting three patents (globally unique nondrug-denatured pure male tilapia and GPS −25∘C cloud cold chain logistics), the more the vulnerable company is able to attain a triumphant price during the negotiation of M&A.

Suggested Citation

  • Tsai-Hsin Cheng & Chung-Jian Huang & Chao-Hsien Sung & Yi-Chang Huang, 2021. "Vulnerable Company’s Triumphs in M&A Negotiation under the Impact of COVID-19 — An Empirical Study of Asian Companies," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-30, June.
  • Handle: RePEc:wsi:rpbfmp:v:24:y:2021:i:02:n:s0219091521500120
    DOI: 10.1142/S0219091521500120
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