| Mergers and acquisitions (abbreviated M&A) has become one of the most important business strategies in order to enhance the development of enterprises due to frequent economic interactions between companies. Project investment analysis is a one of the indispensable links during enterprise M&A activities. However, in practical most of the enterprises overlook Project investment analysis or do not use it scientifically to make the accurate quantitative research, and Project investment analysis is one of the key factors to project success. On the other hand, Project investment analysis can not be duplicated as different projects have different situations. Therefore, applying Project investment analysis scientifically before the implementation of the project has most important significance either in practical or in theory.Company B, a traditional media company, is marching into new media industry under the guidance of development strategy"traditional media operation service providers, emerging media content providers, cultural industry strategic investors". Preparing merging with Company M, which is a high quality online company in network game industry, becomes an important step during the process of marching into new media industry.In order to make the follow-up negotiations with company M more targeted, accelerated and scheduled, this paper focus on analyzing the development of network game industry,the competition situations and company M's current operating situations and development potentials based on the information of peripheral industry and early due diligence investigation。Based on analysis result, the project of Merging with company M is evaluated by two enterprise valuation models, cash flow discount method and market method under the precondition that the investment risk of company B is reasonable controlled and the enthusiasm of company M's management team is fully mobilized,Then reasonable purchase price is made。The financial benefit of the project is comprehensively evaluated by use of financial data, Combined with the actual financial structure of company B , the comparisons of varieties of Capital raising and acquisitions , creative and most reasonable payment proposals under current conditions。This paper shows following conclusions: (1) Company M is currently operating in good condition without obvious history flaws, the product research and development gradient of which is reasonable。Also the core backbone personnel are stable and financial structure is reasonable except that the internal management remains to be strengthened. (2) If company B purchases company M with reasonable price through scientific management and strict risk control, the industrial structure can be optimized , the company profitability can be improved and the chances of transaction with the third parties can be reduced。(3)If company B can achieve good economic benefit after merge ring company M with reasonable price, this project is safe and feasible in economic aspect。... |
