Pricing And Timing Of Super Competitive Environment Of Business Mergers And Acquisitions Based On Option Games

The arrival of the era of Hypercompetition makes acquisitions a high value, frequently fast, cooperation more.But at the same time the characteristics of the Hypercompetition makes acquisitions huge risk. Because of the uncertainty of the merger and acquisition of income, merger and acquisition cost of the irreversibility and merger and acquisition time flexibility, acquisition has real option characteristics The value of the options there are multiple uncertainties, the option exercise price is not fixed and there is an interaction between the options, which makes M&A brings a huge risk to the business. In view of this, on the main and enterprises should be more careful to select the optimal M&A opportunity, a reasonable estimate of the value of the target company, the acquisition of income maximization.Merger and Acquisition has an opportunity cost,and is the value of the option, the acquirer should choose an optimal timing to achieve maximum value.In view of the importance of timing of M&A strategies,referencing scholar’s studies,this article researches the timing of proprietary M&A and corresponded values of waiting to invest on optimal stopping theory in the conditions of one acquirer or more acquirers and by taking into account of the characteristics of the merger under Hypercompetition from two aspects on Management attitude of target.Come to the main and enterprise game process, the two sides are more willing to take quotes; the Lord and companies usually occupies acquisitions advantage; ratio of enterprise value is and compensation by a number of factors affect the conclusions;We establish the mathematical models,and respectively analysis the parameters.Finally,evaluating and numerical example verification.