The Research Of Value Assessment Of Enterprise M&A Based On Real Options

Enterprise M & A,as an important strategic investment method,has become an important strategy for enterprises to grow and expand its business.In the process of M & A,the value assessment of the objective enterprise is an important decision-making work,and it has relation to the pricing of transactions and the success or failure of M & A.However,the traditional methods of value assessment do not take into account the value of uncertainty in the process of M & A,so the assessment results are often low.Therefore,the research of value assessment of enterprise M & A has some practical significance.To change the status quo that the enterprise value is generally underestimated,theorists have applied the theory of real options to the valuation in M & A,and have agreed that the value of M & A include the value of the assets and the value of real options. However,they do not form a unified understanding of the calculation of real options, nor the calculation model which can be used in the practice.In this paper,we find that the method of Monte Carlo simulation has incomparable advantages in the calculation of the value of uncertainty.This article combine the Monte-Carlo method with the Black-Scholes pricing model and form a calculation model based on the real options theory.And this model is expected to develop the value assessment theory in the actual valuation in M & A.This article first review and sum up the value of the traditional M & A assessment methods,and analyze the shortcomings of traditional methods.Second,we demonstrate that the M & A process have the characteristics of real options,and analyze of the different kinds of the real options in the process of enterprise M & A.Then we introduce the Monte Carlo simulation method into the calculation of real options,and combine the Black-Scholes pricing model.We establish a complete value assessment model based on the real options and develop the valuation method in the enterprise M & A.Finally,we introduce the actual enterprise M & A case of the Shanghai Diesel Engine Company Limited,and calculate the value of the target companies using the calculation model established in this paper,to illustrate this model can be used in the actual valuation in enterprise M & A.