Research On The Evaluation Of Enterprise M & A Value By Real Option Law

Merger is an important way to achieve rapid business expansion. After initial enterprise development, You can quickly find a new profit growth point or achieve a certain degree of monopoly industries to maximize their own profits; Through structural adjustment operating range or products, market share, strategic adjustments to achieve the increase, jumping profitable growth. Aspects of Merger transaction process designed especially complicated, including feasibility study, negotiations, the two sides each game to determine the ownership structure of the transaction, the target company’s pricing and other multi-stakeholder landscape. Among these, the core of the program is to determine the transaction price, the two sides also focused on the most controversial, the most prominent part of the contradiction lies. What is more directly related to the success or failure of Merger transactions. Therefore, to explore acquisition pricing is very meaningful.This article is to introduce transaction pricing as the core content of the traditional discounted cash flow model pricing method also introduces the real option pricing method, and through case Huayi Brothers Holdings silverside technology to analyze the real option pricing method using reasonable at the time of mergers and acquisitions, while further noted deficiencies and disadvantages of the traditional DCF model pricing method. Finally, the method has proved the usefulness and accuracy of real option valuation in the industry in the new, purpose of this paper is the application of Real Options preliminary exploration.This paper argues that Real Option Method in M & A business valuation major role in two aspects: one is configured by the uncertainty implied option value and valuing assets different acquisition strategy. Second, the real options method than the traditional discounted cash flow valuation at the time have more management flexibility. Although able to clear through research, real options method in the framework of corporate acquisitions when used in this article, but must have a clear understanding of the lack of awareness of the existence of financial and physical changes of asset prices. How to more accurately estimate, the authors proposed the formation of a collection of all kinds of options "options group" for further dynamic analysis.