Research On Working Capital Forecast In The Value Evaluation Of Target Enterprise

Global M&A activity is on the rise,and mutual mergers and acquisitions of various companies have continued.Under the background of such activities,the relevant theories about mergers and acquisitions are also constantly enriched and developed.At the same time,unlike the expectation of strengthening the influence of the company,the huge scale of M&A activities in the world tends to lead to the outcome of M&A.Even the M&A activity between most companies has failed.Most of the company’s mergers and acquisitions not only did not achieve the synergies originally expected,but the company’s final benefits after the merger,the trend to the failure of mergers and acquisitions.Studies have shown that overpayment of M&A considerations is one of the main reasons for most companies’ M&A failures.In addition,the integration of the mergers and acquisitions after the merger consideration is also an important reason for the final merger failure.However,an efficient and appropriate M&A integration solution will only require the acquirer to fully understand the target company.It can be seen that in the M&A activities,the M&A party needs to know the target enterprise well,and use appropriate and reasonable enterprise value assessment methods to evaluate the value of the target enterprise and pay a reasonable M&A consideration.It is the first step to successfully complete the M&A..The paper puts forward the relevant theories of enterprise value assessment at the present stage,and emphasizes the related concepts of income law.This paper is also based on the theory of income law.Through the idea of ?discounted cash flow method in income method,the forecasting ideas of working capital are improved,and the specific method of reclassifying working capital to improve enterprise value evaluation is proposed.This paper will focus on the forecast of working capital,and through re-classifying the idea of working capital,in order to obtain more information on the management of working capital of the target enterprises,it will provide a reference for the subsequent merger and acquisition integration.This paper will focus on the case analysis to introduce the forecasting method of improving working capital under the income method in the enterprise value measurement.Take the target company SN enterprise as an example,through the prediction and discount of a series of data,it is estimated that the case company will eventually Value data.In this way,it focuses on analyzing the changes in the data generated by the improved working capital forecast,and proposes the advantages and limitations of reclassified working capital forecasting.In the end,the prediction method of reclassifying working capital under the income method is applied in the M&A process,aiming to more accurately assess the enterprise value of the target company,and more importantly,enabling the acquirer to obtain more working capital management aspects of the target company.The information finally improves the success rate of M&A integration between companies.Through data analysis,this paper concludes that this method of forecasting working capital can refine the enterprise value assessment process before the merger,which is helpful for understanding the characteristics of the enterprise.After the merger,this forecasting method is based on the operation of each channel.The characteristics of funds are conducive to taking reasonable integration measures.