A study on target company financial analysis strategies and techniques in merger and acquisitions: A case study on pfizer allergan acquisition

Through development in economical environment all over the world, entrepreneurs and competitors started to discover new ways for growing and adapting themselves to this acceleration in change. Mostly "but not only" by gigantic companies, mergers have taken place intensively in the economical history of the world in 80's and started to shape a new behaviour in an excessively competitive economical environment, which is called shortly M&A, mergers and acquisitions (or takeover with other saying). Many literature review leads one that the most effective motive for merging two companies or taking over a company is "Synergy." Despite this is the one motive effecting decision to merge or takeover or (vice versa for selling side), another more effective reason is dominating the market, or investing a profitable business, or capturing a competitor who might be a big menace for you. After an acquisition considered from such perspective, most important question becomes "how valuable this investment, or what will be the added-value after merging?" Today, there are many professional companies providing company valuation services for M&A transactions and providing consultancy how to know another company deeply. In this study, purpose will be to disclose the ways to understand target company in M&A transactions in a financial strategical approach perspective. For actualizing this purpose, all literature review and all applied methods in actual life for analyzing target company will be compared, explained and eventually an actual life M&A process and valuation will be presented. Keywords: Merger, Acquisition, Growth Strategies