Real option analysis. The viability of real estate projects

The purpose of the current paper is to elaborate the model for assessing cumulative synergetic effect in M&A (Mergers and Acquisitions) deals on the basis of a real options approach. The majority of papers on the synergetic effects of M&A deals typically focus on a particular type of synergy, while the current paper proposes a model that accounts for the cumulative simultaneous effect of different types of operating and financial synergies. The methodology of our research is loosely based on Datar-Mathews real option valuation model, which is flexible and intuitive for practitioners. Formulae for assessing eight types of synergy typically arising from M&A deals are developed. They are integrated into a single model to assess their cumulative effect on the M&A deal using a simulation modelling approach. The method was used ex post to find synergy values in two recent M&A deals in the pharmaceutical industry, and produced sound results. The proposed approach to value target companies could be used by firms before an M&A deal in the due diligence process. Using this tool a company can build a bidding strategy and define the maximum premium it can pay for the target.

Investment analysis is a crucial process for any investment’s success. This process can be supported by both the discounted cash flow analysis and the real options analysis. Many researchers have point out restrictions for the first one, in cases of uncertainty in the entrepreneurial environment. The main types of uncertainty, concerning the wind energy sector, include uncertainties related to the price of electriticity by RES, the public policy regulatory policies, the demand, the initial capital costs, the technological progress, the weather conditions, the political and economical situations and generally the RES market structure. In this paper, we try to find the optimal investment strategy in a liberalized global electricity market, where the price of electricity is uncertain while the other parameters are configured separately in each country. The authors consider about the factors of the time for investment and the electricity’s price level, in wind energy by using the real options theory. The authors select a variety of data for the wind energy industry from different countries in several continents, and also create a model for the investment analysis in this entrepreneurial sector.

This study examined the factors that drive e-commerce technology adoption in the real estate industry in Qatar using the Technology Acceptance Model 3 (TAM3) and sought to analyze the relationship between perceived usefulness, perceived ease of use, anchor factors, adjustment factors and cognitive instrumental variables and their effect on e-commerce adoption in real estate industry in Qatar. The study adopted a descriptive methodology and quantitative research design utilizing survey strategy. 350 filtered and screened questionnaires that were retrieved from the Quota sample from 59 real estate firms operating in Qatar were analyzed using AMOS. The results indicate that all the dependent variables have significant relationship with e-commerce adoption indicating that the original model used was a good fit, accounting for a large percentage of the variance associated with e-commerce adoption. However, the results also show that only perceived usefulness and anchor variables have positive direct effect on e-commerce adoption; perceived ease of use, adjustment variables and cognitive instrumental factors have notable indirect effect on e-commerce adoption.