The Research On Evaluation Method Of Target Companies In Strategic Acquisitions

At this stage, the frequent occurrence of mergers and acquisitions have become theinevitable trend of economic globalization, corporate mergers and acquisitions can beobtained through economies of scale, risk-averse, but also promoted the social adjustment ofindustrial structure, optimize the allocation of resources, enhance the core competitiveness ofthe economy as a whole development. However, in the ongoing merger matters, somecompanies simply chase short-term interests, while ignoring the long-term strategicdevelopment goals, making M&A activity does not achieve the desired results. To this end,entrepreneurs began to change merger ideas, expand business scale, the combination of theirown development goals, the implementation of strategic acquisitions.In this context of this article, the first of the domestic and international mergers andacquisitions business valuation theory to sort.summarize, strategic mergers and acquisitions,business valuation concepts and characteristics as a starting point in assessing the value of afull analysis of the status and objectives of strategic acquisitions of companies after the statusquo, through the introduction of the traditional methods of business valuation target, analyzeits strengths and weaknesses and the applicable limitations, made strategic acquisitions aim isto get the value of post-merger synergies enterprise resource integration. The assessment ofthis value, just as the traditional method for assessing the value of the target company itselfhas been unable to meet the needs of the valuation. To solve this problem, this article from theperspective of the target enterprises constitute the starting value, strategic M&A targetenterprise value into the value of their enterprise value and synergies of two parts; enterpriseitself can use the value of the traditional enterprise valuation methods to assess, while thevalue of synergies part, because it has the characteristics of real options, try to use BS realoption pricing model to assess the value of such acquisitions more reasonable estimates,comprehensive, and also to improve and perfect the target enterprise evaluation method, toform a complete value assessment system. Subsequently, the introduction of a typical strategicmerger cases, the above assessment methods to verify, test its feasibility and applicability; finally summarize the full text, and pointed out the limitations of this study. I hope throughthis study, our strategic acquisitions to give the healthy development of the market and theindustry to provide scientific assessments guiding basis.