Mergers and acquisition

Abstract

The focus of this conference is Mergers and Acquisition under current uncertain economic conditions. I am aware that the subject matter is both wide in scope and sensitive given the prevailing economic climate in Malaysia. Nevertheless, I've resolved a way out by structuring my paper within narrow limits. After introducing the subject briefly, I break the subject into eight parts: * Globalisation and transnational M&A activities * Valuation methodologies * Concept and theories behind DCF valuations methodology * Some features of a typical DCF valuation * M&A: Malaysian context * Some searching questions * The way forward During good times, M&A activities are rampant and the transaction values astronomical (as in the recent spate of merger activities in the USA). During not so good times, such activities are, of course, not so rampant and the transaction values substantially lower. Irrespective of the stage of the economic cycle, one of the most important factors, if not the most important one, in every merger, acquisition, MBO, divestiture is the establishment of the transaction PRICE.