Volume 1 • No.2 | December, 2017
Appraising Synergy Value in M&A Practices in Vietnam
Nguyen Kim Duc, Huynh Kieu Tien, Tran Bich Van
Abstract:
This study was conducted to test actual synergy values in company merge and acquisition (M&A) practices and the feasibility of synergy value valuation techniques in Vietnam. This research employed a valuation method which is the cost of capital method for appraising enterprises before and after M&A to achieve the first objective, while DCF method was used to achieve the second objective. Using data of typical M&A deals in Vietnam, this study’s results show that not all M&A deals generate synergy value. Also, DCF is a feasible method for appraising synergy value in Vietnam. Finally, an empirical survey reveals that DCF is the most commonly-used and feasible method according to appraisers.
JEL classification: C58 . G32 . G34.
Citation: Nguyen Kim Duc, Huynh Kieu Tien & Tran Bich Van (2017). Appraising Synergy Value in M&A Practices in Vietnam. Banking Technology Review, vol 2, no. 2, pp. 273-292.