A broad M&A due diligence process encompasses the missions in three phases: searching and preliminary screening potential candidates, evaluating the candidates and deciding the target, and assisting the after-transaction integration. This work applies a FMCDM approach to the second-phase evaluation. Under the concept of MCDM, the evaluator considers the information from different aspects and criteria. In addition to the usually adopted quantitative information, by using Fuzzy Set Theory the qualitative information can be computed. The evaluator's judgments on the ratings of candidates versus criteria and the importance weights of aspects and criteria are expressed in linguistic terms and represented by fuzzy numbers. Through Fuzzy Arithmetic all information is synthesized. The order of candidates is ranked after defuzzifying the synthesis values. The acquiring firm can then work out a more specific study, including pricing and costing, on the top candidates to decide the target.
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