The Application Of M&a Performance Evaluation System Based On EVA

M&A is a result of the in-depth development of market economy, as the strategic decision in the process of enterprise development, it can help enterprises to realize the business diversification and internationalization, it’s also an effective means to help enterprise development by leaps and bounds. Today,as the scale and amount of mergers and acquisitions has increased dramatically, the market environment has become increasingly complex, M&A activity brings a tremendous development opportunities for enterprises, but it also brings the same great risk at the same time. thereby, the effect of M&A become very uncertain, the better M&A effect,the more positive influence will be act on enterprise performance,otherwise,it will produce more negative influence. Therefore, with a scientific and effective method to evaluate the M&A performance, not only can measure the effects of M&A, but also can provide reference and guidance for enterprise integration and enterprise development strategy. So, the M&A performance becomes the important content in the study of M&A.In this paper, combining the literature research, case studies etc., selecting a very representative M&A event which happened in 2001 of Chinese market as the research object, on the basis of the relevant theories and the characteristics of the case corporation, based on EVA, constructing a M&A performance evaluation system from two aspects: financial indexes and non-financial indexes, which suitable for Chinese market, and the case corporation has been comprehensively analyzed. Firstly, introducing the basic theories and the more commonly used research methods of M&A performance evaluation, thus raises the EVA evaluation method; Then, based on the development goal of enterprise value maximization, elaborating the design of the M&A performance evaluation system, determining five financial indicators: EVA return rate, EVA growth rate, Net Operating Profit Rat before interest after tax, Capital Turnover Rate, Weighted Average Cost of Capital and five non-financial indicators: customer, technology, management, policy, development strategy. Using factor analysis method to determine the weight of the financial indicators, designed a M&A performance evaluation system suitable for Chinese listed-company; Finally, based on the evaluation system of this paper, analyzed the changes and the related reasons of the single index scores and the composite scores respectively, which before and after the M&A event of Wanhua chemical, and put forward the research conclusions.