A Case Study Of Kangsheng Stock Merger Based On EVA

M&A is one of the important ways for enterprises to restructure assets,expand market share and improve comprehensive competitiveness.Influenced by the fifth wave of M&A in the world and China's reform and opening up,China began to move towards the development path of market economy,and M&A activities of enterprises increased year by year.Up to the beginning of the 21 st century,China's economic growth rate still maintained a steady upward trend in the context of sluggish global economic development,and the impact of M&A activities of enterprises was not insignificant.Usually,before carrying out M&A activities,enterprises should first evaluate the value of the target enterprise,and then determine the transaction price within the value range acceptable to both sides of the M&A according to the professional evaluation results.After prudent M&A bid and multiple bidding games,the final price of M&A is determined.The research shows that different methods of value evaluation will lead to different evaluation results.If the selected method is not appropriate,the calculated evaluation results will have a huge deviation from the actual value of the enterprise,which will affect the success of the subsequent m&a activities.Even if the transaction is finally completed,the transaction price will have an impact on the future business performance of both parties.Therefore,it is a key link in M&A activities to select an appropriate valuation method to reasonably price the transaction of the target enterprise.After reading and sorting out relevant literature,through the comparative analysis of traditional valuation method and EVA valuation method,taking Zhongzhi in the M&A of Kangsheng Stock as a sample case,through the analysis of the real situation of the target enterprise,the EVA valuation model is modified and adjusted appropriately,so as to make the enterprise value measured more real and accurate.In addition,this paper also introduces the concept of value test model to test the reasonableness of the consideration paid by Kangsheng Stock and the impact of the acquisition on Kangsheng Stock.At the same time,through the analysis of the synergistic effect of the five mergers and acquisitions of Kangsheng Stock,it further verifies the change of the overall business value brought by the M&A to Kangsheng Stock.The following conclusions are drawn:(1)EVA value evaluation model can reflect the real value of target enterprises in M&A activities.(2)EVA value evaluation model can provide decision-making Suggestions for the M&A activities of Kangsheng Stock.(3)The acquisition will improve the financial position of Kangsheng Stock.(4)EVA value evaluation model is more suitable for the research of acquisition value of new energy automobile enterprises.Combined with the full text analysis,the following two Revelations are finally obtained:(1)Enlightenment on perfecting EVA value evaluation model.(2)Inspiration for Kangsheng Stock to enhance the overall commercial value after the completion of the merger.