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| Title: | 實用選擇權觀點下之策略性併購：以富邦北銀之合併為例
Real Options in Strategic Acquisition: A Case Study of the Fubon-Taipeibank Merger |
| Authors: | 鄧森文
DERN, VINCENT |
| Contributors: | 周行一
CHOW, EDWARD H.
鄧森文
DERN, VINCENT |
| Keywords: | 併購
實用選擇權
富邦金控
台北銀行
Mergers and acquisitions
Real options
Fubon Financial
Taipeibank |
| Date: | 2003 |
| Issue Date: | 2009-09-14 09:45:46 (UTC+8) |
| Abstract: | Despite high failure rate, M&A remains a dominant strategy for corporations seeking expansion in a mature market, such as Taiwan’s financial market. What’s more, acquirers often pay premiums over targets’ market price for acquisitions. A combination of M&A and real options theories is introduced to better explain management’s rationale behind strategic acquisitions. To highlight the strategic moves without mathematical calculation, this paper adopts a strategic real options approach to analyze a case in point – the Fubon-Taipeibank merger. Using the real options strategy, the acquisition becomes an initial service platform expansion toward Fubon’s vision of becoming a leading regional financial institution in Asia. The exercise of Fubon’s option (buying Taipeibank) solidifies its market position with enhanced capitals and revenues, and serves as an option of follow-up M&As.
Real options also inspire the M&A integration process. Three key stages, namely target identification, negotiation, and integration, are taken as options, one leads to another. The purpose is to maximize shareholders’ value by applying real option thinking to demonstrate management flexibility along the M&A process, which cannot be seen by other capital budgeting approaches.
Despite high failure rate, M&A remains a dominant strategy for corporations seeking expansion in a mature market, such as Taiwan’s financial market. What’s more, acquirers often pay premiums over targets’ market price for acquisitions. A combination of M&A and real options theories is introduced to better explain management’s rationale behind strategic acquisitions. To highlight the strategic moves without mathematical calculation, this paper adopts a strategic real options approach to analyze a case in point – the Fubon-Taipeibank merger. Using the real options strategy, the acquisition becomes an initial service platform expansion toward Fubon’s vision of becoming a leading regional financial institution in Asia. The exercise of Fubon’s option (buying Taipeibank) solidifies its market position with enhanced capitals and revenues, and serves as an option of follow-up M&As.
Real options also inspire the M&A integration process. Three key stages, namely target identification, negotiation, and integration, are taken as options, one leads to another. The purpose is to maximize shareholders’ value by applying real option thinking to demonstrate management flexibility along the M&A process, which cannot be seen by other capital budgeting approaches.
Section 1 Introduction 1
Section 2 Background Information 5
2.1 The Liberalization of Taiwan’s Financial Market 5
2.2 Introduction of Fubon Financial Holding Company 10
2.3 Introduction of Taipeibank 14
2.4 The Merger 16
Section 3 Literature Review 21
3.1 Mergers and Acquisitions 21
3.2 Real Options 35
Section 4 Research Methodology 51
4.1 Mapping a M&A Investment onto a Call Option 52
4.2 Multistage Real Options of Acquisition 55
Stage 1: Target Identification 59
Stage 2: Negotiation 60
Stage 3: Integration 63
4.3 When to Exercise 65
Section 5 Analysis 68
5.1 Strategic Value and Thinking Effort 71
Strategic Value 1: Think Big 72
Strategic Value 2: Bank’s Unique Role as a Service Channel 73
Strategic Value 3: Complement to the Composition of Fubon Financial 74
Strategic Value 3: Keep Options Open 75
Strategic Value 4: Strategic Fit of Product Lines and Sales Channel 76
Strategic Value 5: Now or Never 78
5.2 Flexibility Value and Acquisition Premium 79
Flexibility Value: Stock Swap 80
Avoid Overpricing: Due Diligence 82
5.3 Synergistic Value and Integration Cost 83
Integration Cost: Employee Resistance 83
Synergistic Value: Economies of Scope and Scale 87
5.4 Options in a Business Strategy 88
5.5 Post Merger Performance 92
Business Performance 92
Panelist Survey 96
Section 6 Conclusion 98
Bibliography 102 |
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| Description: | 碩士
國立政治大學
國際經營管理碩士班(IMBA)
91933012
92 |
| Source URI: | http://thesis.lib.nccu.edu.tw/record/#G0091933012 |
| Data Type: | thesis |
| Appears in Collections: | [國際經營管理英語碩士學程IMBA] 學位論文
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