Title :
Improvement of Discounted Cash Flow Theory in Mergers and Acquisitions Based on Games
Author :
Liu, Hongjiu ; Hu, Yanrong
Author_Institution :
Dept. of Manage., Changshu Inst. of Technol., Changshu, China
Abstract :
The result of value appraisal decides whether an enterprise acquires target or not. Discounted Cash Flow is a theoretical, widely applied method of value appraisal. However, it predicts cash flow by linear model, static appraisal and ignores integration cost. This paper tries to amend the flaws through combining games and Discounted Cash Flow method, considering integration cost. The amendment optimizes Discounted Cash Flow method, increases its practicability and science. Its improvement is available to reduce the risk of value appraisal and complete integration successfully.
Keywords :
appraisal; corporate acquisitions; financial management; game theory; acquisitions; discounted cash flow theory; games; integration cost; mergers; static appraisal; value appraisal; Appraisal; Conference management; Corporate acquisitions; Cost accounting; Electronic commerce; Game theory; Optimization methods; Predictive models; Statistics; Technology management; Games; Mergers and Acquisitions; Value appraisal;
Conference_Titel :
Electronic Commerce and Business Intelligence, 2009. ECBI 2009. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3661-3
DOI :
10.1109/ECBI.2009.46
