The Research On The Methods Of Objective Corporation Valuation In M&A Activity

With the acceleration of the global economic integration, enterprise merger has becomea trend the world. Since 1980s, merger has improved in scale, quantity in china. Whether ornot merger can be successful, the primary question is to reasonably assess value of the targetenterprises.This article, with reference to fundamental theory and experience of corporate valuation,explores the basic theory and practical problem of corporate value, corporate valuation andcorrespondent methods, in order to establish a theory and method system as guidance tocorporation. this paper gives an analysis on the four methods of corporate valuation, thatis ,discounted cash flows, market comparative method, assets valuation , furthermore, itdiscusses their respective adaptability and limitation, and how to select a proper method toevaluate a corporation practically.The issue how to make decision by a company that intends to merge by another oneor ,to the contrary, to be merge by another one is discussed game-theoretically with respect topricing policy, thus giving an optimal choice to either party. Such a game-theoretic analysis ofpricing is aiming at avoiding ineffective merger and acquisition to foster the growth of eachparty so as to implement effectively the restructuring and optimization of resource allocation.