The Research On G Cable Networks Group’s Value Evaluation To Acquisition Target Enterprise

Region segmentation, being not mutually communicated, repeating constructionserious and the majority of companies not listed is the fundamental current situation ofChina’s cable network enterprise. With the advance of the triple play policy, it wasfaced with intense competition, and at a competitive disadvantage. Whole network, theindustrial management is the most effective way to make the cable network enterprisesbigger and stronger. Now, the national cable network operators are ongoing large-scalemergers and acquisitions.M&A pricing is the core issue in the success of mergers and acquisitions.Therefore, the assessment of target enterprise is particularly important. M&A is acomplex behavior, factors affecting the transaction price is not just the value of targetcompanies, as well as M&A development strategy, the macroeconomic environment,M&A risk and so on. Because there is no public stock price, the non-listed targetcompanies’ value lack of market pricing. If executives making investment andoperating decisions based only on the fuzzy recognition of the enterprise value, thenthe risk of failure would be great. A deep understanding of the nature of the enterprisevalue, finding the factors affecting the companies, and selecting the appropriateassessment models and methods is essential for the correct evaluation of the targetenterprise value and the success or failure of M&A activity.In recent years, the new media represented by wired network merger premiumsignificantly. This article attempts from the value evaluation and acquisition pricingdifferential degree analysis the problems of the G Cable Networks Group and why itwill happen. In the case section, according to the cable TV network enterprise valueevaluation of specificity, the non-listed company valuation theory and M&A valuecreation theory, this article select two classic M&A cases of G company to analyze itsvalue evaluation. In the full analysis of the target enterprise’s competitive environmentand competition status, combined with the company’s long-term strategy, we try tounderstanding the strategic buyers pay high premium on motivation and rationality.Finally, this paper make recommendations to M&A value management of G company.