Application Research On Comparable Company Analysis In M&A Of ShangHaiGongChuang

With the rapid development of China's economy,M&A activities have become increasingly active,and the proportion of asset-light enterprises such as information technology has become larger and larger.As a critical process in M&A,how to reasonably evaluate such asset-light enterprises has received wide attention from the society.The cost approach,which is widely used in practice,often leads to underestimation of the value of such enterprises.In order to provide a reasonable pricing reference for both sides,the use of market approach will be a trend.This thesis studies the case focus on evaluation of business valuation in M&A,and points out the existing problems.Based on the valuation theory of Wall Street investment banks,combined with the characteristics of company and its industry,this thesis analyzes the applicable conditions of comparable company analysis in our country and selects comparable company analysis to re-evaluate its enterprise value,then conducted a sensitivity analysis of the results of the income approach.by comparing two evaluation results,a reasonable price range is obtained.In this thesis,when the company's value is re-evalued by comparable company analysis,it makes the following two amendments:Firstly,the transaction multiplier was modified for the characteristics of China's capital market and evaluation object to make it more reasonable.Secondly,considering that the selected comparable companies belong to the listed company,their value contains the assumption of good liquidity,but the evaluation object belongs to non-listed company,the lack of liquidity will result in a discount on its value.At the same time,due to the control of the valuation object after M&A,it is necessary to adjust the controlling premium on the enterprise value.Therefore,this thesis considers the impact of lack of liquidity and the controlling premium on enterprise value.For light-asset companies,the combination of comparable company analysis and income approach can provide more reasonable pricing reference for both sides of M&A.With the improvement of the rationality requirement of evaluation results,the application of comparable company analysis will be more extensive.