The valuation of construction companies

The main objective of this thesis is to study the valuation of construction companies in mergers and acquisitions. The thesis is divided into three main parts; Mergers and Acquisitions, Valuation, and a Case Study. Mergers and acquisitions are at the forefront of discussions in the industry. This is in large part because of the way in which they characterize and contribute to the new economy; for the pressures that they impart on global competition and for their role in promoting globalization through the diminishing importance of traditional geographic boundaries. The number of studies in mergers and acquisitions in the construction industry are minimal when compared to other industries such as banking and telecommunications. Consequently, this first part identifies the general different types and reasons for mergers and acquisitions while attempting to tailor them to the needs of a construction company. The second part elaborates on the concept of valuation and on the different methodologies used by valuators when estimating the value of a construction company. The valuation approaches presented here can apply to all sizes and types of construction companies. Moreover, it is of fundamental importance that the valuator be familiar with the construction industry specifically as contractors typically retain the majority of their value in intangible assets. The theoretical concepts discussed in the first two parts of the thesis are then applied to a case study. The case study that will be discussed is the merger of HOCHTIEF AG with Turner Corporation.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2004

Author dc:creator

• Sassine, Edmond, 1980-

Advisor dc:contributor.advisor

• Fred Moavenzadeh.

• Civil and Environmental Engineering.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

en_US

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/28362

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/28362