Mergers and acquisitions based on DEA approach Online publication date: Tue, 30-Sep-2014
by Jie Wu, Qingxian An, Liang Liang
International Journal of Applied Management Science (IJAMS), Vol. 3, No. 3, 2011
Abstract: Mergers and acquisitions (M&As) have become a more and more important topic in the management and development of companies. Companies usually conduct M&A to preserve or extend their competitive advantages. However, M&As usually fail in real life. For the given bidder company, a critical step to the success of M&A activities is the appropriate selection of target companies. Previous studies rarely considered the profile of the bidder company and its compatibility with candidate target companies. Although data envelopment analysis (DEA) has been applied in M&A, previous studies in this area haven't discussed the selection. In this paper, DEA was applied to support the decision making of mergers and acquisitions for decision making units (DMUs), i.e., the companies. We established a greedy algorithm to implement the selection process. This approach can make up the deficiencies of previous studies in some degree because it considers bidder and target company simultaneously.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Applied Management Science (IJAMS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook