The Value Assessment Case Research Of Company BN

Acquisition,as one of equity trading behavior,is a dynamic process that covers the target enterprise selection,the target enterprise valuation and transaction price finalization.The price setting problem of the target enterprise plays a vital role in whether equity trading behavior can proceed smoothly or not,such as the acquisition.Therefore the primary and pivotal problem is finding how to evaluate the price of company more scientifically and fairly.As a basic evaluation method,although the Income Method is widely used in the evaluation practice,there are still some irregularities in the process of parameter determination.It is very important to further standardize the determination of parameters and to quantify the relevant parameters reasonably.This article uses the research methods of literature research,comparative analysis and case analysis,takes the value assessment case of BN company as the research object,and then deeply analyzes the determination process of the key parameters under the Income Method.We find the existence of many typical problems in the process of entity cash flow estimation and discount rate determination,such as entirely basing on experiences and doing subjective judgment.To solve these problems,this article puts forward the corresponding improvement suggestions.Such as considering the adjustment of Taxable Income to amend the estimation of Income Tax Expense during the forecasting period;doing a supplemental forecast of Payroll Payable and Taxes Expense to revise the estimation of the increase in Working Capital,which is combined with the consideration of the historical situation and future development trend of BN company;selecting the representative Shanghai Component Index to amend the estimation of the Market Risk Premium according to the actual situation in China;using a model to quantify the coefficient of specific risk adjustment in order to reduce the subjectivity of parameter determination.Finally,this article reassesses the value of BN Company and summarizes the case revelation after comparison analysis and sensitivity analysis.We hope to provide some meaningful reference to the improvement of Income Method.