Research On Application Of Enterprise Value Evaluation Methods In M&A

Merger and Acquisition is one of crucial global economic development methods,and perfect way to widen scale,form the competition of market.Those companies who can make a good use of it will gain great progresses.The process is very complicated because of all kinds of relationship with different legal regulations.So every factor will be focused on.On the contrast, those companies who handle with it unsuitably will get into dilemma deeply for dispersing enterprises' resource.Author believes how to value target firm is the key factor influencing success and failure.It is one of important area which produces controversy between academy and enterprise.Base on it,this paper do some research on it.Combined qualitative analysis with quantitative analysis,this paper first simply introduces some theories and knowledge about M&A and value assessment.Then it introduces the traditional ways of value assessment:assets valuation,market comparative,discounted cash flows,combining with several cases,and each method has its advantage and disadvantage.The enterprise after merge and acquisition develops indefinitely,and applying the option theory in the enterprise value assessment is a new method,thus this paper emphasizes the application of option theory on value assessment.The author analyzes the several methods,combined them together,and then applied it in value assessment on target enterprises to get a reasonable and precise result.Generally speaking,as an emerging service in our country,the corporation value assessment has not still formed a complete system,but we can predict that the corporation value assessment will have broad development space with the further development of market economy in our country,the theory and method of corporation value assessment will be innovated and consummated continually.