Value Assessment Of M&A Between Film Makers

With the development of globalization and the upgrade of China’s economic transformation, mergers and acquisitions(M&A) becomes the hot issue in the process of Chinese economic growth. Mergers and acquisitions not only can work out the problem of stock capital in capital market, but also can improve the value of incremental capital. As a significant step, it could evaluate target, determine reasonable price range, make rational offer strategy as well as maintain benefits of the parties. Undoubtedly, above step plays a vital role in the success of negotiations and the realization of strategy scheme. The same is true for movie media enterprises throughout the phenomenon in recent years. M&A stand away from scientific and fair evaluation. This article attempts to find value-assessing methods of target companies for further study. It could give suggestions for our M&A of media enterprises towards standardization and marketization. This article based on analysis of relevant research both in home and abroad, and the feature of M&A between film makers. Then the article chooses EVA assessment model to evaluate movie media enterprises according to comprehensive consideration. The paper adjusts the differences between EVA method and traditional accounting method. And the article also improves parameters in calculation. In addition, the author puts forward EVA exam model in order to examine whether the method is feasible or not and applies the method to practice as well as compares the result to evaluation report of appraisal agency at the end of this article. According to the study of case, it could prove that EVA model offer another method to the value assessment of M&A between film makers, and as an additional part, EVA test model enriches EVA assessment model.