The Research On Valuation Of Target Enterprises In Strategic Merger&Acquisition

With the process of the economic globalization accelerating gradually, the competition between the enterprises is more and more fierce. Chinese entrepreneurs became to realize that enterprises must focus on a long-term development and strategy in Merger and Acquisition, which enlarges enterprises and makes enterprises invincible when faced with the domestic and international competition. This is the goal of strategic Merger and Acquisition. Researching on strategic Merger and Acquisition is more and more important, because it has become an unstoppable trend in-our country. Evaluation is a core work of acquisition activity, which relates to the success or failure in the deal. Strategic Merger and Acquisition has its own characteristics different from the others. So considering its characteristics, the key point of this article is to find the way to evaluate the target enterprises in strategic Merger and Acquisition.This article researches the factors affecting the target enterprises’value from the angle of strategic Merger and Acquisition, summarizes the advantages and shortage of the current evaluation methods and evaluates the case of Ping An Merger and Acquisition of SDB. After evaluation, this article finds out advantages and shortages of the method from reliable data. At last it comes up with a method of factor analysis as a solution. This article can provide some reference to strategic Merger and Aequisition market which is more and more heated.This article is constructed by seven parts.The first part:Describing the background and significance of this topic, and also the research method.The second part:Respectively reviewed domestic and foreign research on evaluation of Merger and Acquisition, thus, establishing the theoretical basis of this article.The third part:Define Merger and Acquisition and some other related concepts. Explain the motivation theory, which provides guidance to research on the internal and external factors in strategic Merger and Acquisition.The fourth part:The analysis and choice of the method to evaluate the target enterprises in strategic Merger and Acquisition. Research the factors affecting the target enterprises’value from the angle of strategic Merger and Acquisition and summarize the advantages and disadvantages of the current evaluation method.The fifth part:Case studies. Through the case of Ping An Merger&Acquisition of SDB, find out advantages and shortages of the future earnings method and come up the idea to comprehensively evaluate with non-financial factors quantizing.The sixth part:On the basis of explaining problems, propose a method and measures of improvement and use the method to evaluate the case.The seventh part:Finally, draw some regular conclusions and suggestion on the factors analysis method.The contribution of this article lies in the analysis of the internal and external factors in strategic Merger and Acquisition and finding out the lack of non-financial factors quantizing, so as to come up with a method of factor analysis as a solution to comprehensively evaluate.