Synergy from strategic M&A and its relationship with Performance of M&A are the main topics of this paper. The aim of this paper is to evaluate performance of M&A through calculation of the synergy and other factors resulted from it. Compared with synergy in M&A, the synergy from strategic M&A is a part of strategy of development. It results from diffusion and rebuilding of core competence. On the other hand the synergy from strategic M&A is expecting gains, which depend on M&A integration and the condition of its operation in the future, so the risks in M&A and operation in the future are bound to have an influence on the synergy. According to the traits of synergy from strategic M&A, this paper applies the FCFF to the calculation of the synergy and utilizes risk index to adjust the result. When evaluating the performance of strategic M&A, because of some costs brought by the synergy, we should not only calculate the synergy but also figure out the costs, such as premium value, integration costs and so on.
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