Research On Valuation Of Synergy Effect Of The Film And TV Enterprise M&A

After the film and TV industry M&A boom broke out in 2013,it has gradually cooled down since the second half of 2016.In the context of the downturn of the entire economic environment,the film and TV industry has been frequently revealed scandals such as “Sky-high Remuneration”,“Yin and Yang Contract”,etc..And besides,capital fled one after another and regulatory policies kept pressing.Therefore,2018 was an unprecedented “cold winter” for the film and TV industry,which was once regarded as the “Cash Pooling”.And at the same time,M&A has further regressed rationally,which was at the result of the market looking forward to more high-quality M&A transactions to promote the benign development of the industry.Obviously,the aim of the enterprise adopting M&A strategy is to obtain its synergy effect value,and also the success of M&A depends on whether it can generate synergy effect.So,from the perspective of the Asset Appraisal,the synergy effect value of M&A can be evaluated to test whether the synergy effect is produced or not.Therefore,in order to better meet the market demand,the asset appraisal industry,as the indispensable role in the M&A market,needs to further improve its professional level and service standard,and this paper is just based on this purpose to carry out the research.Firstly,this paper analyzes the appraisal of synergy effect value of M&A which is divided into static synergy value and dynamic synergy effect value from static and dynamic perspectives.On the one hand,static synergy value is just analyzing synergy value in terms of financial statement,and in order to predict whether the M&A will produce synergy effect and highlight the asset-light attribute of the film and TV industry,this paper will use one of the Asset Appraisal—Income Method.On the other,M&A can be thought as a process of dynamic change,thus,this paper will introduce options thought to embody the risk and uncertainty of M&A and use the method of real option—B-S Model to evaluate the enterprises' value before M&A and the after.Secondly,after the basic model is built,the feasibility of the model is verified by the case of HuaCe Film and TV taking over Croton.And at last,after the above research,the conclusion is that it is extremely essential to appraise the value of the synergy value in M&A of the film and TV industry,which has the reference value for both sides,and besides,it has certain feasibility that the combination of the static and dynamic perspective to evaluate the synergy value,of course,it can be further improved in future research.The contribution of this paper lies in: the research on evaluating the synergy value in M&A through the concrete case,and the introduction of the options thought into the research.And then,the illustration of the necessity of appraising the synergy value in M&A and the importance of paying more greater attention to the dynamic synergy value.