The Empirical Study On The M & A Evaluation Of Chinese Enterprises In Dcf Based On The Case Of Bright Food Group Merging Bright Daily

In the development of modern economy, it is dawn on us that almost on huge-scale enterprises adopt the way of M&A.Because our consummating market economy system and the in-depth development of Chinese listed companies sub-owned shares reforms, the acquisition activities of our enterprises develop rapidly. The form of acquisition is increasing and the amount involved is also getting more and more. The value of discovery-based M&A in China is gradually being accepted. But the general M&A achievement level of many enterprises is on a descenting trend, which can not make the enterprises unify scale economy with the synergy effect. Every coin has two sides, so is M&A. While a successful M&A deal will bring enormous profits to the enterprise, a failing M&A deal may drive the enterprise to the last ditch. The causes of M&A failure are complicated, the important one of which is that M&A initiators'analysis of the value of the object enterprises is not thorough and complete. How to determine proper purchase price in correct value evaluation method and the integration after merger are crucial to the success of the enterprise purchase decision.Based on the methods combined the theory and practice, qualitative research and quantitative research, this thesis selects the acquisition case of Bright Daily as analysis object to reflect the actual situation of our state-owned enterprise merger. This thesis tries to learn from results of the case, choose the valuation methods, emphasize the integration after merger, avoid M&A errors, enhance merger performance. The first part of this text is introduction, which describes the research background, significance, method, innovation and disadvantages. Meanwhile, this paper summarizes the research situation of the valuation about the current domestic and international M&A. The second part briefly introduces the basic situation of both sides before the acquisition, and emphatically analyzes the motives of both. The third part makes the valuations of Bright Daily in DCF. Through calculating and analyzing the historical financial index, combining the analysis of economic environment, industry development prospects, company market position and strategic plans, the paper forecasts the future financial index of Bright Daily, draw on the future free cash flow of the company, and select the appropriate discount rate on the company market value. The fourth part analyzes the differences between purchase price and forecasted market value. The main reasons are the payment of consideration in equity division and acquisitions integration costs. The fifth part induces suggestions on the problems which should be solved in the current M&A process in china.This article mainly introduces the basic situation of both companies and the M&A motivation, evaluates the market value of Bright Daily in DCF model, analyzes the differences between actual paid price and the valuation result. Finally, this thesis puts forward several Suggestions to the M&A activities in china.