The Study On Target Enterprises' Value Assessment Of Overseas M & A

With the development of global economic integration, overseas mergers and acquisitions have become principal means for enterprises to carry out the international strategy. China's companies begin to go abroad to implement overseas mergers and acquisitions strategy, as respond to foreign acquisitions of domestic enterprises. Although many data indicate that China's overseas mergers and acquisitions are well underway, however, the result of mergers and acquisitions are not satisfactory. Compared with western countries mergers and acquisitions activities that have developed over one hundred years, China's overseas mergers and acquisitions start very late, and many theoretical and practical issues need to be resolved. The investigation shows that 1/3 of Chinese-funded enterprises in the overseas go on well, and gain profit; 1/3 are in maintain condition; another 1/3 are into a loss or suspension status. About 50%-70% of the mergers and acquisitions cases ended in failure. In the current environment of economic globalization and competition increasingly, strengthen the assessment of the target enterprise's value is the most important work to ensure that the activities of China's overseas mergers and acquisitions carry out smoothly, but also to promote the healthy development of mergers and acquisitions. Therefore, the article researching on the assessment of the target enterprise's value has certain theoretical and practical significance.Based on referring to the domestic and abroad theories of mergers and acquisitions and value assessment, the paper described the development process of China's overseas mergers and acquisitions, and summarized the motivation and characteristics of mergers and acquisitions, then analyzed methods to evaluate the target enterprise's value and main factors that impact the target enterprise's value. Considering the current methods of evaluating the target enterprise's value exist shortcomings, the article built a model for value assessment. In order to verify the feasibility of the model, the article analyzed a specific case. In aspect of assessing the target enterprise's value, the study can provide a reference for overseas mergers and acquisitions practice.