Work detail

Determinants of Merger Bid Premiums and Discounts in Target Valuation Processes

Author: Bc. Jan Harrer
Year: 2008 - summer
Leaders: prof. Ing. Oldřich Dědek CSc.
Consultants:
Work type: Bachelors
Language: Czech
Pages: 59
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Link:
Abstract: Mergers and acquisitions are nowadays playing more and more significant role on globalizing financial markets. That fact raised requirements on quality of acquisition target valuations. In the valuations process there are premiums and discounts applied for some features that are not concerned in the core valuation model.
The paper examines the determinants of merger bid premiums above the market price on the sample of European mergers and acquisitions from 2000 till now.
The work is divided into two parts. The first deals with theoretical aspects that are entering the acquisition process and hereby influencing the bid price and thus also the premium. Particular chapters describe merger motives, valuation process, Due Diligence, M&A legislation, specific role of Private Equity and the current situation on the European M&A market. The second part using econometric models tries to identify, which attributes of merger processes and which characteristics of its participants play the main role in determining premiums paid above the actual market price.
Downloadable: Bachelor Thesis of Jan Harrer

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