||Financial institutions that undergo mergers and acquisitions can be divided into two types: institutions that have robust constitutions take the initiative, while those do not wait passively. The size, background, monetary amounts, government regulations, international deregulation, and other factors must all be taken into account when looking at mergers/acquisitions. However, most crucial incentive is the ultimate benefit or expansion. To achieve a result in a merger/acquisition that satisfies all parties, apart from skillfully applying M&A strategies, the application of game theory, the psychologies, and the strategies of the bidder and the acquired should be also put into consideration. Therefore, countless logical deductions and calculations are necessary before creating the best result. |
This paper discusses and analyzes M&A strategies, with a goal of finding the best strategy in the application of game theory in mergers and acquisitions, so as to avoid failures in operations caused by misjudgment based on false analyses and evaluations. Additionally, it will provide decision makers with references for re-examining the weaknesses of the institutions and adjust the operation principles, conduct organizational transformations, or optimize processes, so that the bidders may become the dominant player in applying game theory.
Keywords: Mergers and acquisitions of finance institutions, M&A strategy, game theory.