Estimating the Synergy Value of Merger Valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit of (SBU) Bank Tabungan Negara (BTN)

Abstract

The merger and acquisition of banking industry are a very important issue in Indonesia. Similar to other banking mergers, the mergers will benefit Bank Syariah Indonesia (BSI), Sharia Business Unit of Bank Tabungan Negara (BTN), and all company stakeholders. This study assessing Bank Syariah Indonesia’s current business environment, determine company’s valuation. This study analyses the environmental aspects of Bank Syariah Indonesia (BSI), both external and internal. Research methodology using quantitative and case study design. This study collects secondary data through various sources. This study computes valuation using Free Cash Flow to Firm (FCFF) and the Discounted Cash Flow (DCF) method. The result show that the synergy value of merger valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) is Rp.98,333,621.89. By calculating the synergy value of Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) merger, management could get additional data from preparation of merger and acquisition process.