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Decision making in mergers: An application of the analytic hierarchy process
Author(s) -
Bagchi Prabir,
Rao Ramesh P.
Publication year - 1992
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090130202
Subject(s) - viewpoints , analytic hierarchy process , ranking (information retrieval) , set (abstract data type) , computer science , hierarchy , process (computing) , analytic network process , operations research , mergers and acquisitions , management science , outcome (game theory) , decision maker , multivariate statistics , artificial intelligence , machine learning , mathematical economics , mathematics , engineering , economics , art , finance , market economy , visual arts , programming language , operating system
A critical element in the success or failure of an acquisition outcome is the ability to identify compatible acquisitions. This study focuses on the operational problem of effectively ranking a set of potential acquisition candidates against a multivariate set of attributes. The paper illustrates the usefulness of the Analytic Hierarchy Process methodology in this regard. The model is fairly easy to use and is flexible enough to permit the decision maker to consider multiple viewpoints and multiple attributes that may be qualitative or quantitative in nature. The suitability of the model is illustrated by applying it to a hypothetical example.