Study On Valuation Of M Asset-light Company In Condition Of Acquisition

In the process of mergers and acquisitions(M&A),the target company’s valuation is an important part of the transaction.It directly affects the acquisition transaction price,affects the interests and decisions of both sides,affects the future of the companies’ business after M&A,even so crucial to the success of M&A.Along with our society developing,people’s cultural life enrich constantly,promoted such as film and television media,advertising,Internet,games’ development and expansion of non-traditional industries,which the company has the characteristics of the intangible assets to total assets ratio is heavier,known as the "asset-light companies".With the development of such industry,light asset M&A events between the company increased year by year.Compared with traditional companies,the valuation of the asset-light companies is more special.The choice of the valuation method,the key points and the parameters in the calculation of the valuation model are difficult.This paper used normative research method、case study method and comparative study method.In an overview of the basic theory of companies’ valuation,I analyze asset-light companies and its characteristics of valuation.Then I introduce the case of merger and valuing M asset-light company,and analyses it,including the analysis of the evaluation method of case selection,the model parameters,and the key points should be paid attention to.Explore the insufficiencies and difficulties of M company.In view of the insufficiencies and the difficulties,I get relevant implications and suggestions.This has a practical significance for the future valuation of asset-light companies.I try to use different methods to calculate and analyze the valuation of asset-light company in the case.I believe that compared with other methods,Free Cash Flow to Equity Method(FCFE)is more suitable for asset-light companies,but in the use of this method,there will be many doubts.In order to improve the rationality and scientific valuation,in the use of Free Cash Flow to Equity Method,we should consider the actual situation of the company,comprehensively understand of its industry’s status and companies’ strategy,and pay attention to some key points of valuation.At the same time,I also give some suggestions of guarding against valuation risk for asset valuation companies.