Value Assessment Of Risk And Protection In Our Coal Enterprise Mergers And Acquisitions

Coal is an important basic energy in China, the sustainable development of thecoal industry to national economic and energy security. In recent years by the impactof the macro economy in China, the demand of coal downstream industry weakness,prices continued to decline, resulting in the majority of the coal enterprises to appearmore substantial losses, China’s coal market presented a bleak picture. In this context,the merger and reorganization of coal enterprises has become an effective way, in theface of adversity to grow. However, the merger is a double-edged sword, the historyof failure of M&A in a few cases, how to survive in the merger, evade the risk of themerger has become the key to the success of M&a in.In enterprise M&A, the value assessment of the target enterprise occupies thecore position, it is the integration of M&a success and merger and acquisition playsan important role. At present the evaluation of the venture enterprises coal industrymergers and acquisitions in the lack of systematic and in-depth study, throughmergers and acquisitions, mergers and acquisitions on the characteristics of thecurrent situation of China’s coal industry is described, suggestions for enterprises inthe M&A evaluation should be based on the specific circumstances of Target Corp,the reasonable evaluation method, which to our country enterprise merger risk, reduceM&A has important strategic significance to improve the success rate of. This paperdiscusses three basic methods of the current application value in the coal industrymergers and acquisitions in the evaluation: cost method, market method, incomemethod, and their advantages and disadvantages, through the list of past M&A caseto illustrate the application of various assessment methods. In research methods, thispaper adopts a combination of qualitative analysis and quantitative analysis, fromdomestic and foreign scholars in the assessment of the value of M&A and researchresults, combined with the actual case in China’s coal enterprises merger Hubeienergy group’s acquisition of Hubei Coal Development Co. Ltd. were analyzed. Theinnovation of this paper lies in: put forward by the previous merger case to summarizethe successful according to the target of the enterprise management status, thedevelopment stage of the most suitable assessment methods, and carries on theempirical analysis through the case.