A Valuation Model for International Acquisitions

Management Decision

ISSN: 0025-1747

Publication date: 1 April 1991


The proliferation of mergers during the 70s and 80s has generated voluminous amounts of research with a primary focus on the impact to the shareholders from both the acquired and the acquiring firms. Relatively little research has been placed on the valuation process itself, especially within the international merger setting. To fill the void, this article details a valuation process based on capital budgeting. This approach is designed for use by foreign firms contemplating mergers or acquisitions across international borders. The framework may also be used to help explain the increasing numbers of non‐US acquisitions of US firms and to make inferences about divestiture and leveraged buy‐out (LBO) activity.



Madura, J., Vasconcellos, G.M. and Kish, R.J. (1991), "A Valuation Model for International Acquisitions", Management Decision, Vol. 29 No. 4. https://doi.org/10.1108/00251749110002936




Copyright © 1991, MCB UP Limited

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