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  • 1. 1 Research proposal Merge and Acquisition in Vietnamese banking sector Table of Content 1 Introduction........................................................................................................................3 1.1 Rationales for chosen topic .........................................................................................3 1.2 Research aim and objectives .......................................................................................4 2 Literature Review...............................................................................................................4 2.1 Theoretical Framework ...............................................................................................4 2.1.1 Definitions............................................................................................................4 2.1.2 Effects of M&A ...................................................................................................7 2.2 M&A practices ..........................................................................................................11 2.2.1 In the world........................................................................................................11 2.2.2 M&A practices in Asia ......................................................................................12 2.2.3 M&A practices in Vietnam................................................................................14 3 Research Methodology ....................................................................................................16
  • 2. 2 3.1 Research Approach ...................................................................................................16 3.2 Empirical Data...........................................................................................................16 3.3 Data Analysis ............................................................................................................19 4 Research Structure ...........................................................................................................21 References................................................................................................................................23
  • 3. 3 1 Introduction 1.1 Rationales for chosen topic Strategic alliances and Mergers and Acquisitions (M&A) are the dominant corporate strategies followed by organizations looking for enhanced value creation (Maire and Collerette, 2011). The growing tendency towards mergers and acquisitions (M&As) worldwide, has been forced through intensifying competitions (Reuters, 2009). There is a need to reduce costs, reach global size, take economic benefits in scales, increasing investments in technologies for strategic gain, desire to expand business into new areas and improve shareholder value. Moreover, corporate restructuring including M&As have given rise to a host of important issues for business decision, for public policies, formulations and economic regulation. Marks and Mirvis (2013) indicated that while enterprises show both internal and external growths, with increased international, it is considered as imperativeness for the enterprises to have inorganic gains those are external. In Vietnam, M&A activities have the socio-cultural traits, which provide guidance in explaining economic happening, through anomaly and transitional characteristic, rather than what provides by completed empirical data (Vuong et al., 2010). Proceed from sales of current asset and enterprise flows focusing on the high speculation security industries, banks, financial institutions, portfolio investment as well as real estates. In long run, the effects of Vietnamese M&A activities are, therefore, questionable. It is observed that volatilities are at high degrees in the process of M&A that possibly blow out the highly expected results through various speculators in case ex post realization is arrived (Pham and Duda, 2009). However, there is limited investigation studying on M&E activities in Vietnam. This dissertation thus aims to provide an overview of recent trend of Vietnamese M&A.
  • 4. 4 1.2 Research aim and objectives This dissertation aims to evaluate the effects of mergers and acquisitions (M&A) activities in Vietnam. The objectives are as following:  To analyze the factors influencing M&A activities in Vietnam  To study the post-M&A performance of the firms and the reasons behind it. Besides, the review of literature discusses a wide range of topics some of which regarding the theories of motivations for M&A, M&A in Vietnam as well as examples of success and failures of M&A activities. 2 Literature Review 2.1 Theoretical Framework 2.1.1 Definitions Mergers & Acquisitions or M&A refers to the consolidation of two or more firms in order to achieve targeted goals in their business strategy. M&A activities have the same characteristics as firms’ in general: diversity and they are carried out under many different forms and contents: 1. Merger is the combination in which one or many firms of same kinds (called mergered firms) transfer all its properties, rights, responsibilities and legal interests to another one (which is called merger firm). The merger firm is called target firm whose existence will end right after being mergered. Also, the brand of target firm disappears, and will be matched with the brand of the receiving firms.
  • 5. 5 2. Consolidation is the combination of two or more firms (consolidated firm) to form a new firm (consolidation firm) by transferring all their properties, rights, responsibilities and legal interests to a consolidation firm and at the same time ending consolidated firms’ existences. 3. Acquisitions are the combination in which one firm will buy one part or all of the stocks of another one. The goal of this activity is to capture the market, distribution network or make use of distribution network to bring new products and services to the market. The target firms are those who are operating efficiently and effectively and having stable market shares. However, acquisitions sometimes are related to buying or selling debts and the objectives could be firms that are going to be wound up or bankrupt, unable to maintain its business operation. This could also be called reform of firms. The above-mentioned M&A usually exits when a small firm has been bought by a large one. Sometimes, large and long-standing famous firm is managed and controlled by the smaller one and its reputation is kept. This is called reverse takeover. Normally, acquisitions are realized under two ways as follows: 1. Stock acquisitions: Target firm’s voting stock and share or other securities can be purchased by money, and this amount of money will be divided to the shareholders of the target firm. 2. Property acquisitions: The firm can purchase all or one part of the target firm's properties. Differentiating mergers and consolidation
  • 6. 6 Carrying out mergers or consolidation is meant to end the business operation of one or both parties. However, the difference is: for merger transaction, only one party ends its existence (the mergered one) and the merging firm always has a stronger voice in every general decision; for consolidation transaction, the parties with the same economy of scale will consolidate and form a new legal entity, and legal entities of both parties will no longer exit. Such a fair merger is called “merger of equals”, there is always a balance in making decision about the operations of the new organization. Differentiating mergers and the entire acquisition Mergers and the entire acquisition have the same nature where there is a combination of two or more parties to form a single one in operation. However, merger is the combination of two similar parties (in scales, prestige, or financial capacity) with a view to create friendly cooperations and mutual interests for both. And, acquisition is normally related to the “big fish eat small one” action of one powerful party against the weaker one for its possession. However, in fact, there are not many mergers of equals, or consolidation cases but most of them are acquisitions. Normally, one firm can purchases another one with the condition that the purchased firm can state about the merger of equals, instead of an acquisition on a technical level. Most of trade affairs do not even have the agreement from both sides, and the execution party will apply as many approaches as possible to make an acquisition and the story is not as pleasant as it seems. Because mergers and consolidations would require closer cooperations between two parties in which the potentialities of this trade affair must be seen, an agreement in working practice must be made, and later management would need the reasonable shareness between two parties. In some cases, an acquisition could also be considered as a merger if the managers of both parties agree to sit together and discuss about the general development plan to bring the best interests for two sides. That a trade affair
  • 7. 7 could be considered as an acquisition or a merger depends on how it would be tanked place: Is it friendly or complusory to acquire? In general, M&A is like a method of capital mobilization. According to the enterprise laws, investors could have the rights to join the capital in a business, purchase the enterprises’ stocks and M&A is also a right of investors. However, M&A is different from raising capital in stock market because it’s not only the matter of raising capital but also the establishment of the strategic partnership relationship in which buyers – strategic partners - not only join the capital but also improve the value for acquired firms with management capacity, technological skills, and the available distribution systems. Therefore, the goal of M&A is to take the control right at a certain level, not just purely the matter of financial investment, capital or stocks possession like other small investors. 2.1.2 Effects of M&A Positive effects – M&A’s benefits Emterprises decide to do M&A transactions with a view to get benefits from these activities. Their expectations are to enhance competing potentialities, and to increase higher value of shareholders after M&A compared with total current value of both parties under separate operations…Also, M&A activities help save much cost and time compared to the establishment of a new firm. “One plus one equals to three” – this formula states that the special “transformation capacity” can be achieved after each M&A transaction. It is the resonance – the most important and magical motive of M&A, which helps business operations become more effective and raises the value of the new firm if the M&A transaction is successful. Specifically, those resonance values (benefits) are as follows:
  • 8. 8 1. Improving the financial situation: After M&A, the firm can achieve more capital to use, improve capital access possibilities, share business risks, and increase the transparency of finance system. 2. Decreasing employees, lean machine: Normally, the mergers between two or more parties can lead to the decrease of indirect jobs related to marketing, administration, accounting finance… Also, through M&A, buyer can have a chance to meet highly skilled and experienced human resources and discard those unnecessary and ineffective positions. 3. Achieving effectiveness based on the economies of scale after M&A or the brand of the partner: A lager firm can always gain more advantages in doing transactions with partners and negotiating with customers. Moreover, large economies of scale also helps decrease costs and expenses: decreasing the identities in distributing network, saving operation, administration, and management costs… or doing an M&A with a famous and well-known partner can help the firm get such benefits as strong brand name or prestige. 4. Absorbing new technology: Through Merger and Acquisition, a new firm can make use of technology or techniques of each other in order to create competitive advantages. Besides, abundant capital has become one favourable condition for the firm to be equipped with modern technology for better business operations. 5. Increasing competing abilities, consolidating market positioning: After realizing M&A, both sides can exploit mutual advantages, increase market
  • 9. 9 share, make use of customer relationship, cross-sale products and services, enhance competitive capacity and create new business opportunities. However, the resonance cannot be easily achieved under the expectations of both parties, and it does not come as a matter of fact when both sides are doing an M&A. This activity is like the marriage: firstly, two sides wish for a happy life in the future; however marriage may fail if there is no well-prepared knowledge, living skill as well as family happiness protections. So is M&A, when two sides do a merger, the abilities to gain profits can easily be seen but sometimes it can be counter-productive. As a consequence, in some cases, one plus one equals less than two. Apart from the benefits that M&A can bring to two sides, the economics is also benificial as the following details: 1. M&A will make a contribution to the diversification process of investment partners and investment methods. 2. M&A activities will make contributions to change the structure of economy according to the general development requirements of the whole country. These also create job opportunities for the labourers working for the target firm which is on the edge of bankruptcy and try to sustain national financial market system. 3. The state and the government will feel more assured and avoid the waste of resources in order to overcome the consequences of firm bankruptcy, especially those operating in finance and banking. Negative effects
  • 10. 10 As mentioned above, the value of resonance from such unsuccessful M&A trade affairs can be minus (one plus one equals less than two). It can be due to cursory negotiations in the process of M&A, leading to later disagreements in such aspects as: business strategy, finance, management, human resources…The differences and un- similarities in cultures of both parties, especially for international M&A transactions, or the difficulties and overlapping of organization and management could result in such an uncontrollable condition. Besides, firms can lose their brand name after doing an M&A transaction. Brand is a very precious asset, generating huge values of total values. However, due to domestic firms’ lack of experience and perception about the importance of brand and M&A activities, they do not highly appreciate the brand assessment or easily accept the loss of their brand name for other un-proportional benefits. Therefore, it could steadily create a chance for the partners to do an acquisition. These are M&A’s consequences to firms, and for the economy, M&A can also cause negative results as follows: 1. If there is no tight control of market management authorities, monopoly will become one unavoidable issue. In theory, one firm or a group of firms holding 25 % or over of market shares could have monopolistic activities over the whole market such as: increasing interest rate, or applying high- price services… 2. In some cases, firms can take advantage of Mergers and Acquisition transaction to avoid tax, and after tax-free period, they declare to be wound up and merge with other firms.
  • 11. 11 3. After being mergered, new firm may reorganize their human resources and narrow personal system, and the increase of job losses will cause negative influences on workers’ lives as well as the difficulties to the whole economy. 2.2 M&A practices 2.2.1 In the world M&A has appeared and developed through many ups and downs in the world market, especially in America. Beginning from 1890 to 2000, M&A in this state has gone through 5 difficult periods. After the U.S, M&A has appeared in England since the 60s of 20th century. This transaction also appeared in the market of the rest of many European countries in the 1980s. Since the transaction appeared in all markets, it seemed that the M&A wave taken place in the U.S would lead to strong waves in the markets of England and Europe; the reason is due to economic globalization of these giant economies all over the world with mutual close relationship in the development process. After Asian financial crisis, M&A activities were taking place even stronger, declined during period from year 2000 to 2003, and got back on track since 2004. According to the reports of Thomson Financial agent, in 2006 and 2007, there have been many new records of transaction value in the global market of M&A. 2006 is the remarkable year with many records on the speed of transaction value increase and total transaction value saw an increase to 34% compared to 2005. In 2007, it increased by more than 21% compared to 2006. Economists assess that 2007 is the year of M&A market explosion due to financial crisis mainly operating in developed countries led by Europe and the U.S. In this year, mergers and acquisitions mostly focus on banking, finance, gas oil industry, information technology, and
  • 12. 12 auto industry. In finance, the most typical transaction is the acquisition of the Netherland’s ABN Amro bank by three Scottish banks. In the early 2008, global M&A market has shown the signs of negative growth with the decrease of transaction value to 25% compared to the previous period. However, in the context of the economy with lots of obvious changes and implicated influences on business operations, normally the next period will be fast growth and continuous development of M&A market. Therefore, M&A market all over the world is estimated to keep the speed of record growth. 2.2.2 M&A practices in Asia The M&A markets in Asia have become increasingly important as its share in the number of international transactions gained about 10 percent in 15 year-period since 1995. The total value of the M&A transactions also increased from 13.3% to 20.0% during the period (Kummer, 2009). M&A activities are useful for restructuring business firms, at least in the era of fast-changing economic conditions and post-crisis consolidations. The roles of cross border M&Es in Asian economic restructuring, presented by Mody and Gegishi (2000), are relevant to the understanding. In East Asia, there have been a large volume of M&As attracted since 1998, which can be divided on the basic of two distinctive motivations: to resolve past issues and to grasp prospective opportunity. In terms of transitional economies, one of the largest targeted regions in cross border M&As is Lation America, in which, most of these activities focused in privatization program. Although M&A has been done largely through sales of private enterprises, East Asia has considered as the fastest growing targeted region. With regard to Malaysian M&A activities, the painful lesson of the recent Asian financial crisis where the viability of the economic sectors of the South East Asia countries were
  • 13. 13 threatened, the Malaysian regulatory authorities have responded proactively (amongst other measures) by embarking on a program of strengthening the financial sectors. Fauzias (1995) showed that the acquisition of public listed companies did not result in improvement in the earnings performance after the take-over. Contrary to the actual performance of the companies, the investors’ perception on the value of the target increased. Shamsudin and Fauziah (2000) concluded that the relevant authorities have overlooked the dire consequences of such mergers on the above-mentioned variables. The effect of merger on financial institutions in Malaysia is also mixed. Mergers between small firms appear to increase lending to small business, but mergers between larger firms generally decrease this type of lending or leave it unaffected. More recent, Ramlee and Said (2009) on trends and practices in Malaysian financial industries provides for some useful insight, particularly, might possibly compare to the recent M&A trends in Vietnam, included major cross-border transactions like HSBC-Techcombank. Vuong et al. (2010) explains that globalizations, financial deregulation, advance in technologies, cost saving, and desires for acquiring larger share in markets, are main drives to prompt commercial consolidation that takes in M&A form. Similar to other ASEAN countries, M&As in Malaysia are non-market driven. Recent crises expose fragility of its economy. Thus, there is a need of being pushed to strengthen weakness in financial system and Malaysian government saw that speeding up consolidation is significant to facilitate the recoveries. In a research of the Philippines’ market for large-scaled M&A, Castillo (2009) claims that the M&A activities are subject to substantial regulation, regardless deregulations in financial service industries since 1980s. It provides context and history of Philippine since 1950s, and discusses regulation that is introduced in facilitating or prompting M&As. The current trend in M&As is postulated to have emerged from the mid-1990 consolidations in the financial sector, resulting a wave, and then followed by post-1997 monetary crisis consolidations. It
  • 14. 14 concludes that M&As are considered by enterprises as methods in improving the financial position and taking competitive advantages, although not much evidence empirically applied in achieving that. Firms also employ M&As as ways of fending off competitions through remaining powerful financial service player in metropolitan hub. Mergers and acquisitions (M&A) between Japanese corporations began to increase rapidly during the late 1990s. The pace of merger activity in Japan, which had been hovering at around 500 transactions a year in the 1990s, began to pick up from around the end of that decade to reach an annual volume of 3,725 transactions in 2011 (Arikawa and Miyajima, 2011). This represented a five-fold increase in M&A transactions over a 10-year period. For most of the postwar era, Japanese firms rarely resorted to mergers and acquisitions as a growth strategy or as a means of corporate restructuring. In contrast, M&A activity in the form of deals between domestic corporations and foreign takeovers of Japanese firms surged since the late 1990s. More recent, Yasumaru (2009) discusses the rationale for the Japanese SMEs to adopt M&A in recent period of its economic evolution. The study indicated that merger and acquisition is one of the four major options to further develop or maintain existing businesses of SMEs. Moreover, the society considers this a better option because by undertaking merger, small enterprise possibly gain better accesses to not only credits but also equity financed, while they still remain their ability in securing jobs for their labour. 2.2.3 M&A practices in Vietnam The recent wave of M&A in Vietnam was expected to bring in more diversity in financial products and institution that is true (Nguyen and Chen, 2010). Competitions are expected to serve as a driving force for the financial system to be growing up sound and viable. The social expectation towards result of the economic reform path has also been part of a continuous surge of M&A activities. According to Vuong et al. (2010), the surge of M&A
  • 15. 15 activities has been shown quite volatile, and dependent on various externalities to the Vietnamese economy itself. Firm law which came into force in 1999 had mentioned “merger and acquisition” as a form of reorganizing firms, leading to the foundation of M&A in Vietnam. The activity started in Vietnam in 2000 and has expanded since 2005 till now. According to the reports of auditing company PricewaterhouseCoopers (PwC): Table: Quantity and transaction value of M&A activity in Vietnam from 2005 to July 2009 Year Total trade affairs Increase/Decrease Total value (millionUSD) Increase/Decrease 2005 18 61 2006 38 111% 299 390% 2007 113 197% 1.753 486% 2008 146 29% 1.000 -58% First 6monthsof2009:112trade affairs –232millionUSD Source: Vuong et al. (2010) It can be seen from the statistics that M&A in later years has increased many times higher in both quantity and value than the previous year. However, there was a decrease in value in 2008 and in the first six months of 2009 due to global financial crisis. The most special thing in the period is that 2007 is considered as the year of remarkable development of M&A in Vietnamese market and it is evaluated to have the fastest growth in the Asia Pacific region, in which 76 % of M&A trade affairs are related to banking and finance. Thus, finance can be regarded as the most dynamic in recent years, followed by industry branch. However, M&A activities in Vietnam are still limited in comparison with those in the region and all over the world. PwC also published a table of data about the overview of M&A activities in the Asia Pacific in 2006, in which lots of information related to the price, the quantity, M&A
  • 16. 16 trade affairs in 14 countries in the region has been mentioned and given. When talking about M&A activity, people usually think about selling the whole business or those popular mergers of top companies. However, in Vietnam most of M&A transactions are quietly taken place in the form of buying one part of the business and the mergers of medium scales (from 5 USD to 250 million USD). To sum up, it is mentioned during the literature review, there is a virtual existence of no substantial works provided direct studies on Vietnamese M&As. Thus, this dissertation uses a date set organized and compiled to extend the efforts to academic investigation on recent trend of M&A activities in Vietnam. 3 Research Methodology 3.1 Research Approach Market research on mergers and acquisitions is readily available over the Internet from a variety of sources. Traditionally, the advanced research and analysis surrounding mergers and acquisitions in global markets was the exclusive purview of strategic research companies. Information was hard to access, and these specialized companies with expertise in gathering information were the gatekeepers. The Internet has significantly changed access to market research on mergers and acquisitions. Particularly, government use of the Internet to make regulatory filings and statistical information easily accessible to the public has ushered in a new information age. In this dissertation, data is collected through accesses relevant, detailed information on industries, markets and corporations 3.2 Empirical Data In this dissertation, the data set is constructed through many information sources including: (1) information collected from firms; (2) analyses observed from public news and
  • 17. 17 data released in regards of M&A transactions; and (3) financial reports of firms and government. The collected data is categorized into: (1) M&A activities before 2005; (2) M&A activities between foreign and local firms since 2005; and (3) M&A activities among local firms since 2005. Each selected transaction is constrained following useful information: dates; types; target and acquiring companies; transaction status; values in USD; and equity stakes of the transaction. During the period 1999 -2004, there were 46 banks in total, 10 of which must be acquired. These were weak banks which are impossible to make payment and higher operations only lead to higher losses. Specifically, the charter capital is relatively low, around 5 – 20 billion VND and bad debts are also big, probably accounting for 40-50% of gross debt. Table: Some of M&A trade affairs between rural banks and urban major ones, 1999 – 2004: Year Agricultural bank Urban major bank 1999 Dai Nam Bank Phuong Nam Bank 2001 An Giang Bank Dong A Bank 2001 Chau Phu Bank Phuong Nam Bank 2002 Dinh Cong Credit Institution Phuong Nam Bank 2002 Thach Thang Bank Sacombank 2003 Cai San Bank Phuong Nam Bank 2003 Tay Do Bank Phuong Dong Bank 2003 Nam Do Bank Bank for Development and Investment 2003 Que Do Bank International Bank 2004 Tan Hiep Bank Dong A Bank (Source: Summary of different websites). Since 2005 the merger of domestic banks has become less popular, capital investments and stock purchasing of domestic and international investors on domestic commercial banks in order to become their strategic partners become more widespread instead.
  • 18. 18 Table: M&A trade affairs between domestic banks and international investors. Acquirer Targeted Bank Percentage HSBC AB Bank 15 Berhard 15 Societe Generale Sea Bank 15 OCBC Singapore VP Bank 15 Sumitomo Mitsui Bank Eximbank 15 Vina Capital and Mira Asset 10 BNP Paribas OCB 10 UOB PNB 10 ANZ Sacombank 9.83 Dragon Financial Holdings 8.73 IFC 7.63 Standard Chater Bank ACB 15 IFC 7.3 Connaught Investors Ltd 7.3 Dragon Financial Holdings 6.8 (Source: summary of different websites) Apart from domestic banks’ stock purchases of foreign financial corporations and banks, they also wish to strengthen their finance capacity by selling shares to major banks and financial corporations with huge prestige and famous brand name. Table: Some trade affairs among domestic banks, 2005 to 2008 Buying Bank Target bank Bank for Foreign Trade of Vietnam Gia Dinh Bank Vietcombank Fund Management Saigon commercial bank (Sacombank) Asian commercial bank (ACB) Bank for Development and Investment Ho Chi Minh City Development Bank Sacombank Bank for Foreign Trade of Vietnam Phuong Dong Bank Sacombank
  • 19. 19 Bank for Foreign Trade of Vietnam International BankBank for Agriculture and Rural Development Sacombank Military Bank Hanoi Buildin Bank ACB Thuong Tin Bank Dai A Bank Kien Long Bank ACB Vietnam Export Import Bank Bao Viet Securities JSC Petrolimex Finance Company Vietnam Capital Fund Saigon Asia-Europe Financial JSC Vietcombank Ocean BankGlobal Petro Commercial Bank Petrolimex Finance Company (Source: summary of different websites) 3.3 Data Analysis The main approach of this dissertation is quantitative analysis focusing to assign data entry into selected relevant classification aiming to try in capturing meanings observed from data collected. Statistic discrepancy and contradictory result, speculation possibly appeared during the analysis are presented to gain knowledge and judgments of the practical situations. The main methods used to evaluate M&A activities are discount cash flow and adjusted present value. Discount cash flow (DCF) method Discounted cash flow is the method to define the value of the company based on the ability of revenue generation in the future, instead of the property value of the company.
  • 20. 20 Time to define the company’s value is the ending time of the previous financial year. In other words, this method allows the analysts to calculate the predicted revenues and future cash flows through the calculation of incomes and tangible assets at an assumed capital expense. However, the accuracy of this method depends much on the precise prediction of future cash flows and discount rate. According to this method, some steps need to be carried out in order to evaluate firm value as follows:  Estimate future free cash flows Free cash flows can be cash inflows or cash outflows within a certain cycle, calculated by this formula: Free cash flow = net income + amortization + after-tax interests - change in net working capital + increase in short-term debts – investment expenditure  Identify WACC - Weighted Average Cost of Capital Discount rate could reflect opportunity cost of all capital suppliers to the firm (the creditors of the firm or the shareholders) and this rate is calculated by the ratio of the equivalent contributions to firm’s total capital. This investment is expected to be at least equal to capital cost or average cost that the firm has to pay in order to get current business capital. Therefore, capital expense of the firm is the average cost which needs to be paid to achieve business capital within that firm. Therefore, discount rate can be calculated according to WACC – weighted average cost of capital in the following formula: WACC = (WD*rD) + (Wp*rp) + (We*re or ren) Where: WD = debt portion of value of corporation  Estimate the growth rate of firms in the future
  • 21. 21 Growth rate in the future (g) = ROE * (% detained income) Where: ROE = Return on Equity Only a small mistake in the estimation of g - future growth rate of the firm could lead to the change of that firm’s value.  Define the forecasted terminal value (Firm value). Firm value = (Cash flow at terminal period n +1)/[(WACC–g)(1+ WACC)n] Adjusted present value (APV) method Apart from the similarities with DCF analysis, APV analysis does not attempt in capturing tax as well as other financial influences in WACC or adjusted discount rates. Rather, APV analysis seeks in valuing these influences separately through following equation: In general, APV analysis is considered as more academic method since it is more accurate in valuation comparing to DCF analysis. 4 Research Structure In order to achieve the study purposes, the dissertation is structured as following: Chapter Title Contents Chapter 1 Introduction to describe overview and objectives of this study Chapter 2 Literature review to introduce and review recent study in the line of merger and acquisition 1. Basic theory of merger and acquisition 2. International practices of merger and acquisition APV = base-case NPV + sum of PVs of financing side effects
  • 22. 22 3. Recent trend of merger and acquisition in Vietnam Chapter 3 Research Methodology to explore the methodology to address sampling and data processing issues Chapter 4 Findings and Discussion to present the empirical and numerical results to discuss about meanings of these results Chapter 5 Conclusion and Recommendation to express the research findings to recommend solutions to achieve efficiency in merger and acquisition in Vietnam This document is provided by: VU Thuy Dung (Ms.) Manager Center for Online Writing Resources Facebook : https://www.facebook.com/vu.thuydung.5076 Email : assignmentsource@gmail.com Blogger : http://assignmentsource.blogspot.com/ Website : http://assignmentsource.com/
  • 23. 23 References Arikawa, Y. and Miyajima, H. (2009). Understanding the M&A boom in Japan: What drives Japanese M&A? . Waseda University Castillo, M.V.R. (2009). Philippines: Banking Industry Mergers. In: Chand, ed., Mergers and Acquisitions: Issues and Perspectives from the Asia-Pacific Region, pp. 97-109 Fauzias, M.N. (1995). Post Performance of Malaysian Acquired Firms. Jurnal Pengurusan (Universiti Kebangsaan Malaysian), 14(1), pp. 3-10. Kummer, C. (2009). Overcoming the Challenges and Issues of Post-Merger Integration: Putting PMI in the Driver’s Seat in the M&A Process. In: Chand, ed., Mergers and Acquisitions: Issues and Perspectives from the Asia-Pacific Region, pp. 133-147 Maire, S. and Collerette, P. (2011). International post-merger integration: Lessons from an integration project in the private banking sector. International Journal of Project Management. 29, pp. 279 -294 Marks, M.L. and Mirvis, P.H. (2013). 3 A research agenda to increase merger and acquisition success. Handbook of Research on Mergers and Acquisitions, 61. Mody, A. and Negishi, S. (2000). The Role of Cross-border Mergers and Acquisitions in Asian Restructuring. World Bank, Jul. 2000. Nguyen, V. and Chen, J. (2010). Cultural Integration in M&A: A Study of the Acquisition of Andersen by KPMG in Vietnam (Doctoral dissertation, Jönköping University). Pham, H. Y. and Duda, K. (2009). Human and Culture integration in Mergers & Acquisitions: A study of Andersen acquisition by KPMG in Vietnam (Doctoral dissertation, Mälardalen University).

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