In this study, a strategic thinking and planning model known as Synergy Value Index (SVI) model was developed for estimating the synergy value in MandA. The SVI (QE) from the confirmed SVI model allows quick estimation of synergy between two companies in a merger and acquisition. SVI (QE) is expressed as a percentage, which is a measurement of synergy between two companies in an MandA. This confirmed SVI model evolved from the theoretical model through a process of model building. The study took a holistic approach of understanding synergy value drivers from different schools of thought found in the literatures. A theoretical strategic thinking and planning model was developed and confirmed by expert panelists, from which a conceptual model was created. The conceptual model was tested in two case studies and modified to the preliminary model. The preliminary model was further tested in two case studies to arrive at the confirmed model. During the process of model building, the concepts of synergy value and synergy value drivers become clearer. The study found that 39 synergy value drivers are important in estimating synergy value for MandA. However, only 11 synergy value drivers need be considered for quick computation of Synergy Value Index. In addition, the study offers insight to the study of synergy in MandA. Approaching the study from various different schools of thought was significant because it contributes to a holistic understanding of the behavior of the various synergy value drivers. The study proposed a model identifying synergy value drivers that was confirmed by both expert panelists and case studies. By using the SVI as a unit of measurement of synergy, synergy value drivers of different importance can be measured relative to each other for comparison. The model allowed for a quick evaluation of synergy fit in MandA, especially when the time frame for making a good decision with minimum error during the pre-acquisition phase can be very short. In practice, the SVI model can be used with other financial evaluation tools to provide a strategic perspective of the potential merger and acquisition to the acquirer. Hence, the model can be a very useful platform for the acquirer to think and discuss internally and quantitatively in terms of SVI of the various takeover candidate companies. / Thesis (PhDBusinessandManagement)--University of South Australia, 2005.
| Identifer | oai:union.ndltd.org:ADTP/289779 |
| Date | January 2005 |
| Creators | Koh, Tieh Koun |
| Source Sets | Australiasian Digital Theses Program |
| Language | EN-AUS |
| Detected Language | English |
| Rights | Copyright 2005 Tieh Koun Koh |
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