Financial services are a volatile industry. Since the financial crisis, the industry has been dominated by historically low interest rates - the main source of income for retail banks and ever increasing regulations. Mergers & Acquisitions are an important strategic tool in order to gain competitive advantage inorganically - economies of scale, market share or access to new technology. Yet a major challenge in the acquisition of a company is the determination of a fair value. There is no objective price for a company but based on the expectation of synergies and future income as well as an assessment of the seller's current situation, each buyer is ready to pay a different price. This Master's Thesis compares established valuation methodologies and their applicability on financial institutes. A case study evaluates strategic considerations and their outcomes for a banking merger.