37-42
Choice approach to the valuation of the financial institution in м&a contracts using the analytic hierarchy process
Authors: Gricenko K.I., Yaremenko N.S.
Number of views: 640
Gricenko K.I., Yaremenko N.S.
Purpose and subject of research
The purpose of research is rationale for the choice approach to valuation of
financial institutions, the most appropriate in mergers and acquisitions. The object
of study is the choice of approach to valuation of financial institutions in mergers
and acquisitions.
Research methodology
The study used the methods of valuation of financial institutions that are
legislated in Ukraine, namely: cost, comparative and revenue.
Value results
The relevance of the topic chosen is usually in the works of scholars choice
approach to valuation is based on logical reasoning without the use of specialized
tools for decision making. According to the National Standard number 1 "General
Principles of valuation of property and property rights" in Ukraine legislated
mandatory application of the income, expenditure and comparative approaches to
assessing the value of any object. Therefore, the question of choice reasoned
approach to the valuation of financial institutions in mergers and acquisitions are
opened.
Conclusions
The results of the study concluded that, if necessary, to take account of
mergers and acquisitions investment value of the financial institution objectives as
an integrated facility and its development potential is the most appropriate
evaluation procedures focus on methods of income approach. Although he has a
number of shortcomings of traditional methods of valuation, however, is the most
appropriate contractual M & A, takes into account the valuation of financial
institutions in mergers and acquisitions and can be the basis for further research in
the area of valuation of financial institutions in mergers and acquisitions.