EVAluating Mergers and Acquisitions– How to avoid overpaying
نویسندگان
چکیده
The empirical evidence overwhelmingly concludes that in most merger and acquisition transactions, the value created typically goes to the shareowners of the target companies, i.e. acquirers typically overpay. There are two major reasons for this. First acquirers overestimate the value of the target firm and/or the value of the synergies that they will add. Second the rewards of most acquirers’ management teams and their advisers are tied to doing the deal rather than to creating wealth for their shareowners . Tejpavan Gandhok, Anurag Dwivedi Jatin Lal T: 91-22 654 1536 F: 91-22 654 1535
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