ABSTRACT
In early 2015, PT Acset Indonusa Tbk acquired by PT United Tractors Tbk at a price of Rp 3,250 per share. Post carried out the acquisition of the stock market price gradually declined ACST this is reflected on the closing price of the stock market at the end of 2015 reached the level of USD 3,020, down by 7%. Under these circumstances necessary to evaluate the fair value valuation ACST when UT acquired ACST. Acquisition is the takeover of part or the entire stock of another company so that the company take-over have the right of control over the targetcompany. This study aimed to analyze whether there is overvalued or undervalued at the time of acquisition, then knowing how the synergies generated post-acquisition and analyzing financial performance before and one year after the acquisition. This research is done on the acquirer PT United Tractors Tbk and the acquired company PT Acset Indonusa Tbk in early 2015. This study was conducted with the valuation of the fair value ACST at the time of acquisition by the method of Free Cash Flow to Equity. Besides calculating the total synergies obtained post-acquisition UT and UT compares the financial performance before and one year after the acquisition. The results of the valuation of the fair value at acquisition ACST Rp 1,260 per share or occur overvalued by 158%. Despite the overvalued, there are post-acquisition synergies derived from the UT economic activity amounting to Rp 64.4 billion per year. In addition, the UT financial performance year after the acquisition has not shown improvement. Based on research by the author, the management of PT United Tractors Tbk and PT Acset Indonusa Tbk must quickly make repairs and investors are expected to reconsider buying shares ACST pending the improvements made by the company. In addition, management can improve synergies in order to improve the financial performance ACST which will have an impact on the fair value of the company increases.
Keywords: Acquisitions, Valuation, Synergy, Financial Performance.