In June of 2002, Duzon Digital Ware (DDW) a leader in the Korean MIS and ERP software industry, announced their planned merger with New Soft Technology, the technological leader in the same industry. The announcement attracted a great deal of public attention due to its historical economic significance - it was the first attempted merger of listed firms in an identical industry in Korea. The purpose of this case study is to provide students an opportunity to learn valuation techniques by studying how the merger price was determined and how each party would have benefited from the proposed merger. This monograph evaluates the propriety of the cost of the attempted merger to DDW and analyzes the synergetic effects of increased earning power and efficiency that would be born into the newly merged company. In addition, this paper will examine the reasons why the proposed merger failed, despite two separate attempts. Finally, this paper will outline the specific factors which must be considered when evaluating young firms that have recently experienced a surge in growth potential in an increasingly competitive market, such as the ERP market in Korea.