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dc.contributor.advisorLewis, Kyle, 1961-en
dc.contributor.advisorDuvic, Robert Conrad, 1947-en
dc.creatorMomin, Farid L.en
dc.date.accessioned2010-08-26T15:34:25Zen
dc.date.accessioned2010-08-26T15:34:30Zen
dc.date.available2010-08-26T15:34:25Zen
dc.date.available2010-08-26T15:34:30Zen
dc.date.issued2009-12en
dc.date.submittedDecember 2009en
dc.identifier.urihttp://hdl.handle.net/2152/ETD-UT-2009-12-554en
dc.descriptiontexten
dc.description.abstractMergers and acquisitions within the chemical industry is a common practice to increase market presence and customer base. Common justifications for M&A include synergy, business growth and competitive advantages, and management reasoning. Synergies are benefits a combined firm is able to receive through cost reductions, market expansion, and efficiencies in processes. As a result, firms are able to grow and position themselves competitively. To prevent an overpriced acquisition, numerous valuation techniques exist. The discount cash flow examines the value of a firm based on future cash flow. The market multiple compares target firms to similar firms in the industry. Lastly, the asset valuation determines the value of a firm based on the liquidation of the firm. To maximize the return on an acquisition, proper due diligence should be conducted based on the needs and goals of the purchaser, and the value added by the target firm. The premium paid for an acquisition should be based on the valued added through the synergies identified. Current business cycles and future outlook should also factor into the pricing of the acquisition. Having a thorough analysis of a target firm can help the acquirer to clearly understand what is being purchased and hence, determine an appropriate price for the acquisition.en
dc.format.mimetypeapplication/pdfen
dc.language.isoengen
dc.subjectMergeren
dc.subjectAcquisitionen
dc.subjectChemical industryen
dc.subjectOverpriceen
dc.subjectValuationen
dc.subjectDiscount cash flowen
dc.subjectMarket multipleen
dc.subjectAsset valuationen
dc.subjectSynergyen
dc.titleOverpriced mergers and acquisitions in the chemical industryen
dc.date.updated2010-08-26T15:34:30Zen
dc.description.departmentEngineering Management
dc.type.genrethesisen
thesis.degree.departmentEngineering Managementen
thesis.degree.disciplineEngineering Managementen
thesis.degree.grantorThe University of Texas at Austinen
thesis.degree.levelMastersen
thesis.degree.nameMaster of Science in Engineeringen


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