Research On Pricing Of M&A Of Chinese Listed Company By Foreign Capital

M&A is an effective way for the rapid expansion of enterprises, restructuring industrial property rights and reallocating resources. In recent years, as M&A activities become more and more frequently in China, enterprise value assessing method which is single, unscientific have become an important issue. Because it has been impacting M&A. The purpose of this study is to provide pricing ideas for domestic enterprises in M&A through studying on the pricing methods of M&A and empirical research about the pricing method, which were used by foreign investors when they merged listed companies in China.This Paper uses theoretical analysis and empirical research. Firstly, we recall and conclude cross-border M&A theory, value assessment of enterprises theories and game theory. The second part studies on the M&A developing process, M&A causes, M&A models and listed companies' features, which base on the cases of foreign capital M&A of listed companies in China happened from 1995 to 2006.We introduce and classify enterprise value assessing method on whether listed companies continue operating after being merged thoretically. After that we point out that companies of different situation or in different industries should choose different methods. In order to forming a system of value assessing method for domestic companies, this paper discusses how to choose methods and other factors which may impact the final price. To demonstrate the practicality of the method system, we apply it to two listed companies, which were merged by foreign capital in China's capital market. After summarizing and evaluating the cases, this paper points out the problems and provides some feasible advice when using value assessing methods for domestic companies.