Software Enterprise Value Appraisal Based On Life Cycle

The software is one emerging profession, from the 90's until present, software product and the service in our country has grown by 30% above every year, which has enormous impetus to the national economy. Our Government makes great efforts to promote its development, such as reducing tax revenue, establishing software garden, making lots of Software Company established. Along with the tide of merger and the establishment of Imbarking Board of American NASDAQ, European and Hong Kong, Our Software Enterprise entered the time of annexation, merger and acquisition, valuating the software enterprise has appraised imperative.The traditional method of valuating enterprise stresses on valuating stable enterprise. While the software company's value lies on the intangible assets, such as the core technologies, patent technology,software and so on. It is also a kind of enterprise having high-risk, high investment, high intelligence, high velocity, high competition, high potential nature, which makes it different from traditional enterprises and has different evaluation methods. Especially in our country, we have lied behind western developed countries in the theory of assets evaluation.The domestic scholar's research to enterprises'valuation lies in the plane of referring overseas appraisal method and the knowledge of the quantitative investigation to Software Company is in lack.Based on the above consideration, the paper mainly solves the problem of quantitative investigation to Software Company. According to the international enterprise value appraisal theory, the method and the model, unifying our country software enterprise characteristic, the article proposes a new target quantification judgment software enterprise life cycle, based on the life software enterprise value cycle appraisal model. This article uses the improvement enterprise appraisal model which suits software enterprises, and through the real diagnosis way to appraisal our country's software Enterprise value.The paper firstly carries on the software enterprise's characteristics, and then makes judgment on the Software Company's stage of life circle through the method of Analytic Hierarchy Process. According to the characteristics and reflecting factors of different stage, I try to find the evaluating method system to different development stage. In this paper, I use adding method, the DCF two stages works, and establish the model which unifies the DCF model and the finance study option fixed price model to appraise the enterprise value.Utilizing the above research mentality, I get the aim of helping the risk investor decision-making and the software enterprise carrying on the value management through the appraising method which unifies subjective and objective.