المجلة الدولية لنشر البحوث والدراسات

International Journal of Research and Studies Publishing

المجلة الدولية لنشر البحوث والدراسات

Motives, Valuation, and Pricing Analysis of Small and Medium Enterprises in Lebanon

Dr. Racha Mohamad Arab Ghayad 1, Maysam Houssam Elddine Al-Zein 2

Assistant Professor, Head of Finance Department, Faculty of Economic Sciences and Business Administration, Lebanese University, Lebanon 1
Master's degree in Finance and Banking, Lebanese University, Lebanon 2


Abstract:

The objective of this paper is to examine the acquisition processes and get an obvious and clear understanding to motives of buyers and sellers, valuation methods and its difference from the price. Data is collected from interviews, organized, described and used to answer the study questions. Concerning motives of acquisitions in Lebanese SMEs, many factors may trigger or not the business owners to resort to acquisition action for SMEs, where acquisition approach is motivated by enlarging of market power of the organization, and if the company is very profitable to buy and the low prices offered by sellers. The motives for acquisition are the low price of the company, the Profitability of the company, enlarging market share. Synergy and management agency don’t play a significant role in the acquisitions of SMEs in Lebanon. Furthermore, for Seller Company, acquisition can be affected by different motives as Personal circumstances, Good bid from buyer, Dissatisfaction within the company or if the Company is losing.


Keywords:

Acquisition, Small Enterprises, Market power, Price, Buyer, Seller, Lebanon

Assistant Professor, Head of Finance Department, Faculty of Economic Sciences and Business Administration, Lebanese University, Lebanon 1
Master's degree in Finance and Banking, Lebanese University, Lebanon 2
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