Analysis Of Value Evaluation Of Target Companies In Mergers And Acquisitions

With the rapid development of chinese economic globalization,and the introduction of new regulations on asset management this year,domestic companies have become increasingly strict IPO policies.Under such circumstances,mergers and acquisitions have become a major trend for companies to develop and expand their needs.Not only can they effectively and quickly expand their scale,they can also effectively enhance their market competitiveness.M&A can improve the overall efficiency and value of the company,give full play to the advantages of the company’s resources,integrate the internal structure of the company,expand the scale of the company,and reduce costs.The key to the success of mergers and acquisitions is that the pricing of the target companies can be made acceptable to both parties.In recent years,the number and amount of mergers and acquisitions have increased dramatically.Major reorganizations of companies such as privatization and mergers and acquisitions have become more frequent.Under a variety of circumstances,how to properly value and price target companies in mergers and acquisitions has become one of the most important issues in restructuring activities.This article takes the case of merger and acquisition of A&K Co.,Ltd.with ZhongHong Co.,Ltd.as an example to discuss how to conduct reasonable and effective value evaluation on the target company in M&A activities.The author of this article mainly uses theory and case study methods to explore how to effectively evaluate the value of target companies in mergers and acquisitions.The relevant theoretical basis was summed up by querying a large amount of literature data.Based on the related knowledge of merger and acquisition theory and the evaluation method of corporate value,the systematic analysis analyzed the theoretical basis of mergers and acquisitions and target enterprise value evaluation and the motivation theory of mergers and acquisitions,mergers and acquisitions.The three evaluation methods of the target enterprise value,as well as their respective advantages and adaptability,and the theoretical basis for the selection of cross-border M&A evaluation methods,etc.Afterwards,the whole theory was further demonstrated and sublimated through the case of ZhongHong Co.,Ltd.’s acquisition of A&K.The case of value appraisal for target companies in mergers and acquisitions is based on the acquisition of A&K Company by ZhongHong Stock Co.,Ltd.,which first outlined and explained the background of both companies and the causes of mergers and acquisitions,and then used the DCF valuation model in the income approach to A&K.The company’s overall value is evaluated,and finally the discussion of the value creation and evaluation methods of the synergies in M&A activities is discussed.Through sorting out the full text,this paper analyzes in depth the key aspects of target enterprise valuation in M&A projects,and discusses the methods that can be adopted in future M&A cases to evaluate the value of target companies,that is,through the combination of value calculation and value-added value.The way.Finally,through the comparison of the evaluation results of the case and the theoretical basis,the paper summarizes and forecasts the full text,and proposes the directions for future improvement and in-depth study,as well as the practical significance of this article.Enterprise valuation plays a decisive role in the process of M&A transactions.The selection of evaluation methods based on the evaluation criteria for reasonable valuation has always been the focus of M&A research.This article thinks that the method of enterprise value evaluation under the opportunity merger and acquisition environment in China is still not mature.How to improve the research methods and improve the accuracy of value assessment will also be our future research direction.