The option-game analyses on pricing decision of the target enterprise of M&A under fuzzy information surroundings

Though the price of M&A has already been studied based on classical NPV model, which is not adaptable for real uncertain situation. This paper presents a new approach of measuring the target enterprise value of M&A, consisting of two parts, one is measured by NPV model and another is measured by real options model, which can be integrated to calculate the target enterprise by introducing synergy effect coefficient into the developed model. The price of target enterprise can be attained by famous Rubenstein bargaining theorem which was improved to adapted to the fuzzy information surroundings. In last, a numeric simulation was drawn to illustrate the application of price decision formulation, and the sensitivity of price was also shown with the variability of parameters among the developed price-decision model.