The Research Of Value Assessment Method In Merger And Acquisition Based On Option Theory

The frequent occurrence of M&A is inevitable trend of development of economic globalization, by which enterprise can acquire large-scale production and reduce the business risk. Meanwhile, it is an effective way to promote adjustment of the industrial structure, optimize resource distribution of the society and improve competitive power of the whole economics. The key to success of M&A is value the objective enterprise accurately. Accurate value assessment of the objective enterprise is a key of success during M&A. Among which, one of the most important factor is to choose scientific and practical value assessment methods. Presently under the background of fully competitive international operations, uncertainty is one of the most obvious features of modern enterprise's environment. So, whether the investment opportunity can be caught under such an uncertain condition will have great impact on the value of the enterprise.According to the analyses of orthodox valuation methods, though the DCF is a more mature method, it still can not evaluate the objective enterprise's uncertainty value under uncertainty environment. Because investors pay attention to not only the past achievement of target enterprise, but also future development chance, and M&A has the feature of option, thus investors should consider the value of options, it is important to put future development value into value assessment of enterprise. It is nature that the option method can be adopted to valuate the objective enterprise during M&A, it is used to value the uncertainty opportunity effectively, so that it can offer a new way of value assessment for M&A.Firstly, this thesis introduces and uses the experience on the basis of the value assessment theories and research results deeply and systematically, analyses the real option and the characteristics of real option in M&A. Secondly, this thesis analyses the influence factors of the value of real options, discuss the constitution of the value of objective enterprise based on real options theory, In addition to the value of objective enterprise which contains the value of real assets of objective enterprise and the value of synergy from M&A, it also contains the real option value of objective enterprise and the real option value from M&A, designs the model of the objective enterprise value assessment on the basis of the real option method, expounds the questions and suggestions of the application of real option in our country. Lastly, this thesis illustrates the application of value assessment method based on the real option in M&A though a case study.