DocumentCode
3176080
Title
Pricing risk measurement in M&A valuation
Author
Wang, Jing
Author_Institution
Glorious Sun Sch. of Bus. & Manage., Donghua Univ., Shanghai, China
fYear
2011
fDate
8-10 Aug. 2011
Firstpage
3176
Lastpage
3179
Abstract
Valuation of target companies in merges and acquisitions is a complicated issue which contains potential pricing risk. In order to precisely measure the pricing risk of M&A valuation, hence to minimize the chance of M&A failure, a rough model of pricing risk measurement is set up in this paper. By dividing the estimated acquisition price into several interval, using corresponding shareholding ratio to calculate pricing risk, the pricing risk measurement model can be applied to estimate the pricing risk in M&A. Here in this article, empirical research based on a case analysis shows that lower pricing risk proved the purchase price to be more reasonable and good for M&A business.
Keywords
corporate acquisitions; pricing; purchasing; risk analysis; rough set theory; M and A valuation; acquisition price; company valuation; corporate acquisitions; failure minimization; mergers; pricing risk measurement; purchase price; rough model; Companies; Corporate acquisitions; Internet; Pricing; Stock markets; M&A; case analysis; pricing risk; risk measurement;
fLanguage
English
Publisher
ieee
Conference_Titel
Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on
Conference_Location
Deng Leng
Print_ISBN
978-1-4577-0535-9
Type
conf
DOI
10.1109/AIMSEC.2011.6010706
Filename
6010706
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