Publicação
The practice of valuation for M&As and the role of advisors
| Resumo: | This study explores the valuation accuracy of three of the most commonly used models in valuation by financial advisors in a takeover context: the discounted cash flow (DCF), the method of comparable companies and the method of comparable transactions. The motivation for this work is the lack of literature on the topic which motivated an exploratory approach to the issue. The thesis investigates the answer the following research questions: (1) How accurate are the valuation methods? (2) Which valuations method is more reliable? (3) Does the valuation reveals biasness in the valuation taken into consideration the commissioner to whom the financial advisor is reporting to? The hypotheses are tested using a sample of 110 deals that took place in the United States of America and were reported to the Securities Exchange Commission of the same country. The results demonstrate that the expertise advocated by financial advisors is crucial to shrink the range of the valuations. Moreover, the evidence suggests that there seems to be a trade-off between valuation accuracy and range, where DCF method has the largest standard deviation and provides the closest valuation to the acquisition price. |
|---|---|
| Autores principais: | Figueira, Pedro Marques Jardim Salgado |
| Assunto: | Mergers and acquisitions Financial advisors Valuation accuracy |
| Ano: | 2018 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| _version_ | 1868983279205482496 |
|---|---|
| author | Figueira, Pedro Marques Jardim Salgado |
| author_facet | Figueira, Pedro Marques Jardim Salgado |
| author_role | author |
| contributor_name_str_mv | Queiró, Francisco RUN |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Figueira, Pedro Marques Jardim Salgado\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Queiró, Francisco RUN |
| datacite.creators.creator.creatorName.fl_str_mv | Figueira, Pedro Marques Jardim Salgado |
| datacite.date.Accepted.fl_str_mv | 2018-01-20T00:00:00Z |
| datacite.date.available.fl_str_mv | 2021-01-20T01:30:30Z |
| datacite.date.embargoed.fl_str_mv | 2021-01-20T01:30:30Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Mergers and acquisitions Financial advisors Valuation accuracy |
| datacite.titles.title.fl_str_mv | The practice of valuation for M&As and the role of advisors |
| dc.contributor.none.fl_str_mv | Queiró, Francisco RUN |
| dc.creator.none.fl_str_mv | Figueira, Pedro Marques Jardim Salgado |
| dc.date.Accepted.fl_str_mv | 2018-01-20T00:00:00Z |
| dc.date.available.fl_str_mv | 2021-01-20T01:30:30Z |
| dc.date.embargoed.fl_str_mv | 2021-01-20T01:30:30Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10362/37618 |
| dc.language.none.fl_str_mv | eng |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Mergers and acquisitions Financial advisors Valuation accuracy |
| dc.title.fl_str_mv | The practice of valuation for M&As and the role of advisors |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_bdcc |
| description | This study explores the valuation accuracy of three of the most commonly used models in valuation by financial advisors in a takeover context: the discounted cash flow (DCF), the method of comparable companies and the method of comparable transactions. The motivation for this work is the lack of literature on the topic which motivated an exploratory approach to the issue. The thesis investigates the answer the following research questions: (1) How accurate are the valuation methods? (2) Which valuations method is more reliable? (3) Does the valuation reveals biasness in the valuation taken into consideration the commissioner to whom the financial advisor is reporting to? The hypotheses are tested using a sample of 110 deals that took place in the United States of America and were reported to the Securities Exchange Commission of the same country. The results demonstrate that the expertise advocated by financial advisors is crucial to shrink the range of the valuations. Moreover, the evidence suggests that there seems to be a trade-off between valuation accuracy and range, where DCF method has the largest standard deviation and provides the closest valuation to the acquisition price. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | masterThesis |
| fulltext.url.fl_str_mv | https://run.unl.pt/bitstreams/45ccb246-d4af-49ca-8441-97d16c746f7e/download |
| id | run_afdbbfc32205b1caa069c8c2eee59dcc |
| identifier.url.fl_str_mv | http://hdl.handle.net/10362/37618 |
| inst_facet_str | urn:organizationAcronym:unl{{{_:::_}}}Universidade Nova de Lisboa |
| instacron_str | unl |
| institution | Universidade Nova de Lisboa |
| instname_str | Universidade Nova de Lisboa |
| language | eng |
| network_acronym_str | run |
| network_name_str | Repositório Institucional da UNL |
| oai_identifier_str | oai:run.unl.pt:10362/37618 |
| organization_str_mv | urn:organizationAcronym:unl |
| person_str_mv | Figueira, Pedro Marques Jardim Salgado |
| publishDate | 2018 |
| repo_facet_str | urn:repositoryAcronym:run{{{_:::_}}}Repositório Institucional da UNL |
| reponame_str | Repositório Institucional da UNL |
| repository_id_str | urn:repositoryAcronym:run |
| service_str_mv | urn:repositoryAcronym:run |
| spelling | engpt_PTThis study explores the valuation accuracy of three of the most commonly used models in valuation by financial advisors in a takeover context: the discounted cash flow (DCF), the method of comparable companies and the method of comparable transactions. The motivation for this work is the lack of literature on the topic which motivated an exploratory approach to the issue. The thesis investigates the answer the following research questions: (1) How accurate are the valuation methods? (2) Which valuations method is more reliable? (3) Does the valuation reveals biasness in the valuation taken into consideration the commissioner to whom the financial advisor is reporting to? The hypotheses are tested using a sample of 110 deals that took place in the United States of America and were reported to the Securities Exchange Commission of the same country. The results demonstrate that the expertise advocated by financial advisors is crucial to shrink the range of the valuations. Moreover, the evidence suggests that there seems to be a trade-off between valuation accuracy and range, where DCF method has the largest standard deviation and provides the closest valuation to the acquisition price.application/pdfpt_PTThe practice of valuation for M&As and the role of advisorsFigueira, Pedro Marques Jardim SalgadoQueiró, FranciscoHostingInstitutionOrganizationalRUNe-mailmailto:run@unl.ptrun@unl.ptURNurn:tid:2018627192021-01-20T01:30:30Z2018-01-202018-01-20T00:00:00ZHandlehttp://hdl.handle.net/10362/37618http://purl.org/coar/access_right/c_abf2open accessMergers and acquisitionsFinancial advisorsValuation accuracy776648 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesishttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://run.unl.pt/bitstreams/45ccb246-d4af-49ca-8441-97d16c746f7e/download |
| spellingShingle | The practice of valuation for M&As and the role of advisors Figueira, Pedro Marques Jardim Salgado Mergers and acquisitions Financial advisors Valuation accuracy |
| status | SINGLETON |
| subject.fl_str_mv | Mergers and acquisitions Financial advisors Valuation accuracy |
| title | The practice of valuation for M&As and the role of advisors |
| title_full | The practice of valuation for M&As and the role of advisors |
| title_fullStr | The practice of valuation for M&As and the role of advisors |
| title_full_unstemmed | The practice of valuation for M&As and the role of advisors |
| title_short | The practice of valuation for M&As and the role of advisors |
| title_sort | The practice of valuation for M&As and the role of advisors |
| topic | Mergers and acquisitions Financial advisors Valuation accuracy |
| topic_facet | Mergers and acquisitions Financial advisors Valuation accuracy |
| url | http://hdl.handle.net/10362/37618 |
| visible | 1 |