Research On M & A Type And The Selection Of Business Valuation Methods

Mergers and Acquisitions has always been a hot topic in the capital markets. Wave of mergers and acquisitions among enterprises continued repeatedly, and the scope of the merger continued to broaden. At the same time, the ways of M&A is in innovation, and the amount of the transactions is also growing. With the increasingly intense wave of mergers and acquisitions, the issue about the proper use of asset assessment techniques to determine the value of the target company aroused extensive attention. Asset assessment is a kind of social and equitable economic activity, and it is indispensable as social intermediations. Therefore, rational selection and application of asset valuation techniques can not be ignored for the healthy development of China's capital market.The thesis aims to research on M&A type and the selection of business valuation methods. The structure of the thesis goes along the main line of gradual expansion of direct Syrian. According to the different purposes of M&A, the merger was reclassified into investment-oriented M&A and strategy-oriented M&A. Though the analysis of features of M&A, the thesis comes up with different valuation methods to make the pricing of M&A more objective and reasonable.Firstly, the thesis introduces the significance and the background of the topic to be discussed, and explain the theories about mergers and acquisitions from the domestic and foreign scholars.Secondly, the research will undoubtedly involve some basic concepts about M&A and valuation, so the thesis continue to introduce the M&A, the type of M&A, the special nature of M & A valuation, and the general procedure M&A valuation. The M&A will be divided into investment-oriented M&A and strategy-oriented M&A based on the purpose, and the different types of M&A should choose different valuation methods.Thirdly, chaptersâ…¢andâ…£as the core chapters, they analyze the application of valuation methods in different types of M&A in depth. The investment-oriented M&A should be applied to traditional valuation methods. The strategy-oriented M&A focuses more on the added value arising from synergies, and the valuation of synergies had better use the real option method. The thesis comes up with qualitative valuation model and quantitative valuation to make the valuation of enterprise more reasonable. Besides these, the thesis introduces a related case to be an example of theoretical analysis.At last, based on application analysis of valuation methods in different types of M&A, we can get the conclusion of the thesis. At the same time, the thesis come up with a suggestion for the M&A party to make due diligences about objective enterprise, and the M&A side should also concern about the human capital of target company.