Approaches for Handymax Ship-Owning Companies: An M&A Perspective

Abstract Purpose: This paper develops a hybrid “Valuation Approaches for Handymax Ship-Owning Companies: An M&A Perspective”, framework for buyers/investor/ship‑owning companies in the context of mergers and acquisitions (M&A). Design/methodology/approach: The study integrates discounted cash flow (DCF), net asset value (NAV), and hybrid methods, with financing sensitivities across global hubs. IRRs are stress‑tested under hire‑rate scenarios (USD 12,000–15,000/day) and benchmarked against prevailing funding costs. Findings: Results show Japanese, Geneva and Singapore financing structures deliver IRR above US/European alternatives. Practical implications: Shipowners with younger fleets and privileged access to Asian capital enjoy structural advantages. Originality/value: The paper connects financing benchmarks, regulatory constraints, and fleet demographics to valuation asymmetry, offering a forward‑looking framework for post‑2030 market dynamics.