Evaluating Mergers and Acquisitions: A Belief Function Approach

  • Rajendra P. Srivastava
  • Deepak K. Datta
Part of the Studies in Fuzziness and Soft Computing book series (STUDFUZZ, volume 88)


Studies indicate that mergers and acquisitions are characterized by a high failure rate, often attributed to an inability on the part of the acquiring firm management to effectively evaluate potential acquisition candidates. This is not surprising given the considerable uncertainties surrounding both the relationships among factors in the evaluation process and also in the assessment of evidence. This paper develops a conceptual framework for acquisition and merger decisions using evidential reasoning approach under the belief function framework. It seeks to illustrate how expert knowledge of relevant factors can be mapped and how an evidential network can be used by decision makers to incorporate uncertainties in the evidence. Also highlighted is the fact that the nature and extent of evidence that needs to be collected depends on the rules assumed to govern relationships among input variables. Implications for theory and practice are discussed.


Candidate Attractiveness Belief Function Target Firm Potential Synergy Competitive Strength 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Rajendra P. Srivastava
    • 1
  • Deepak K. Datta
    • 1
  1. 1.School of BusinessUniversity of KansasLawrenceUSA

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