O'Reilly logo

Global Mergers and Acquisitions by Yuqin Zhang, Abdol S. Soofi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 11

Target Valuation in Cross-Border Mergers and Acquisitions

So far we have discussed target company valuation methods within a country with value expressed in local currency units. However, cross-­border mergers and acquisitions (M&As) involve foreign currencies and exchange rates. In this chapter, we will discuss exchange rates, cross-­border valuation of cash flows, cross-border valuation of target companies, exchange rate determination, and related concepts and theories.

The Nominal Exchange Rate and Currency Transactions

A nominal exchange rate is the price of one currency in terms of another one. Foreign exchange or foreign currency transactions take place in foreign exchange markets. The foreign exchange market is an over-the-counter ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required