Pricing Decision of Mergers and Acquisitions

During the process of M&A, the first thing that both the buyer and seller should to do is making the M&A decision. Such decision depends on the valuation of the target corporation. This paper analyses both buyer and seller´s judgements of the target corporation value and then comes to three main conclusions: First, give 5 conditions of seller in its decision, Second, point 5 conditions of buyer in its decision, Third, define the fluctuation area in M&A. The three parts not only explain the decision process of both buyer and seller, and also give the boundary of the extension of the M&A price.