| Title | DEA-Based Nash Bargaining Approach for Merger Target Selection |
| Year | 2019 |
| Degree | Master |
| School | Department of Transportation and Logistics Management College of Management National Chiao Tung University |
| Author | Ji-Gang Lin |
| Summary | Merger has been a popular tool of pursuing growth for companies for a long time. Company expected the synergy comes from merger like efficiency enhance and cost saving; however, many studies have shown that the failure rate of merger is extremely high. Hence, conducting an effective analysis before merger is crucially important. There are several studies that propose model using Data Envelopment Analysis (DEA) to do ex-ante merger analysis already, but none of them consider in the price factor of a merger, which is believed as a key factor for a successful merger. This thesis proposed two DEA-based models that integrate the Nash Barraging Game theory into it; one is for horizontal merger, and the other is for vertical merger. Through the model, a decision-making unit that want to conduct a merger, i.e. the bidding company, can calculate the appraised net acquisition value (NAV) for each candidate merger target to establish the ranking list and select the best one to acquire. The proposed approaches are tested by numerical data in the thesis, and one of them is the real data of 16 Security Companies in Taiwan. |
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