EVALUATION OF M&A DEALS: METHODOLOGICAL APPROACHES

Maria COJOCARU, Ecaterina ULIAN Universitatea de Stat din Moldova

Аннотация

Evaluating the efficiency of the M&A deal is one of the most important stages of the transaction. The success or failure of the deal depends on the selection of the appropriate method. This research was conducted in the context of that statement, in which the authors analyze different methods of company evaluation. The authors believe that the Discounted Cash Flow (DCF) method provides a more accurate estimation, based on the conversion of future cash flows into the present assets value that will generate future cash flows. The applicability of this method is based on the data given by two companies, which operate in the winemaking field. One is considered as a potential absorbing company (Purcari Wineries Public Company Limited (previously – as a Bostavan Wineries Ltd.), another –as a potential target company (Taraclia S.A.). Keywords: Mergers and Acquisitions, Evaluation, Discounted Cash Flow, Weighted Average Cost of Capital.