Research On Problems Of Payment Type And Transaction Value In M&A

Research on Problems of Payment Type and Transaction Value in M&AIn recent years, enterprise M&A has been developing rapidly. As an effective method in optimizing allocation of resources, M&A was placed an irreplaceable role. As entering WTO, secondary tide will happen. However, there are many incomplete things in M&A, in order to code them, government has established several regulations. New regulations enrich payment type, and take an opportunity for stock M&A. That will impact profoundly stock market, even national economy. In this economy and society background, researching M&A will be more actually significant. So this paper will, from financial angle, research on problems of payment type and transaction value in M&A, in order to contribute to forthcoming the tide of M&A.Based on the concept of M&A, in the paper M&A is divided into cash M&A and stock M&A. And the paper principally researches transaction value on this two payment types. Firstly, domestic concept and motivation of M&A are compared with foreign country. Secondly, this part researches the decision of payment type and introduces their theoretical explanation, and explores elements influencing the M&A payment and the selection. Finally, the two types of transaction value are researched. The part of researching stock M&A analyses the principles, methods and models of exchange ratio with M&A practice. In the part of cash M&A, the analyzing model of M&A price-Rapport model is recommended. In author's view, discount rate and cash flows will determine the upper and lower range value. And this part demonstrates the determination with an example.