A SURVEY ON BUSINESS EVALUATION METHODS USED IN MERGERS

In mergers, a subject that arouses controversies between the leaders of the companies involved in the transaction is the determination of the exchange ratio. The basis of its determination is represented by the application of business evaluation methods that are completed by a negotiation process. In order to better understand the major aspects regarding this issue, this article presents a literature review of the main business evaluation methods used to determine the exchange ratio in merger transactions. We concluded by showing the context of use and the application conditions of the most used methods.