Optimization of traditional valuation methods in Mergers Acquisitions using fuzzy theory

摘要

It is essential to assess the value of a target company during Mergers & Acquisitions, and this value decides the price of payment. The comparable company analysis and comparable transaction analysis are two practical and effective methods in value assessment of enterprises. Previously, when researchers applied these two methods, they mainly made linear evaluation of comparable companies or comparable transaction data, instead of measuring the similarity between comparable companies or comparable transactions and the target company, thereby reducing effectiveness of these two methods. Based on principles of fuzzy theory, this paper first compares fuzzy nearness between comparable companies or comparable transactions and the company to be assessed, and then modifies and optimizes the original assessment methods on this basis.