Research On The Evaluation Of M & A Value Based On Stakeholders

With the development of China’s economy,M & A activity is increasing.In the practice of M & A,whether M & A create value is always accompanied by doubt.To answer this,first of all,it needs to know the question that "for whom does M & A create value".In the past,most of scholars who evaluated M & A value focused on the impact of M & A on the enterprise or on the shareholders of the enterprise.The paper absorbs the stakeholder theory and constructs a comprehensive evaluation system.Based on the system,we can study whether M & A creates value for stakeholders.The paper chooses shareholders,creditors,employees,customers,suppliers and the government as the stakeholders to analyze their interests.Based on the analysis,the paper selects the 17 indicators of 6 categories,and then uses the analytic hierarchy process to determine the weight of the indicators,and then builds the formula of the total score and scores.The change of the total score can reveal the influence of M & A on the overall value of the various kinds of stakeholders.The change of the scores can reveal the influence of M & A on every kind of stakeholders.The annual growth rate of the total score reflects the creation extent of value caused by M & A.The paper applies the comprehensive evaluation system to the case study of Huace M & A Croton Media.The results show that the M & A has created value from the perspective of all kinds of stakeholders.The results also show that the M & A has increased the interests of shareholders,customers and suppliers,but has made a negative impact on creditors,employees and the government.The paper also uses the event research method and the financial analysis method to explore the M & A.The result shows that the comprehensive evaluation system has the rationality and the unique superiority.Finally,the paper analyzes the innovation and the shortcomings of the research.The comprehensive evaluation system of M & A value in the paper has its rationality,but it needs to be further revised and perfected.Once the comprehensive evaluation system can be promoted,it is very helpful for the government regulation,public supervision or enterprise management.