M & A Research

This thesis, based on financial terms, focuses on two important issues facingmergers and acquisitions practitioners to provide useful suggestions on theirsuccessful implementation, which are the valuation for acquired target firms and thedecision on forms of payment and financial vehicles for mergers and acquisitions withthe analysis of valuation process, description of practical forms of payment andunderstanding of financial vehicles. Concretely speaking, there are two valuationmethods: "discounted cash flows" method and "real options pricing" method. Theterm "real option", a popular subject known to contemporary mergers and acquisitionsresearchers, is applied in the latter method;the decision on forms of payment formergers and acquisitions revolves around describing advantages and disadvantages offorms of payment, and the discussion on how to choose financial vehicles is detailedin seven aspects, which are capital structure optimization, term structure, pay backrates, currency categories, creation and marketing channels of financing tools, andexpected change of controlling rights.