An Assistant Evaluation Model for Mergers Analysis Using AHP and Fuzzy Set Theory-A Case Study on Bank

• Main Authors: Ting-Fang Hu, 胡婷芳
• Other Authors: Chun-Te Chen
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/74008954066782589989

碩士 === 華梵大學 === 資訊管理學系碩士班 === 93 === As the banking industry consolidation is prevailing in the financial market, the consolidations of financial institutions not only increase the size of the financial institutions, but also improve the scales of economic and competences of the financial holding companies and banks. However, finding a merger target involves a very multifarious valuation and decision-making process and needs some experts’ opinions in the screening process. This research introduces a Merger & Acquisition (M&A) valuation model to be in assist of the M&A decision process. This model adopts Analysis Hierarchy Process, AHP, which combines Fuzzy Set Theory, current market valuation practice and experts’ opinions. It also provides the objective analysis and applies the Cost Benefit Analysis to pick up the right merger target. This research sorts the current valuation factors and criteria into two aspects, benefit aspect and cost aspect. The benefit aspect includes eight factories and several criteria, including clients, products, teams, channels, total assets, operating performance, total deposit balance, and subsidiary/ affiliate companies. The cost aspect includes asset quality, efficiency ratio, funding cost, number of employees, operating expense, personal expense, system architecture and compatibility and culture difference. The valuation model presented here is applicable to a real M&A case analysis. The research’s result shows that the financial instantiations has to decide the desired post merger market position and market segments before making any M&A decisions in order to find the best M&A targets. Also, it is needed to adjust or expand the valuation model with different scenarios to avoid the possible post merger regrets.