Research On Liquidity Discount Of Non-Listed Companies

At present,China's mergers and acquisitions are unprecedentedly prosperous,and the acquisition of listed companies by non-listed companies is a common pattern in M&A transactions.Listed companies also increasingly use the results of asset valuation as a basis for pricing.Asset valuation criteria require that asset appraisers pay attention to liquidity issues but do not propose corresponding solutions.In practice,most of the appraisers only use the rules of thumb and professional judgments to consider the liquidity discount.In the process of using the income method,they do not even consider the impact of liquidity discounts,and it is difficult to convince users of the assessment report.In order to solve the problem of the correct measurement of liquidity value in the evaluation of corporate value,this article starts from theoretical research,explores the main factors affecting liquidity discount,constructs a reasonable discount model and analyzes its applicability,and finally applies the discount model in combination with the case.This paper starts with the causes of equity liquidity discounts,and explores the external and internal factors that affect non-current discounts from the perspective of qualitative research.Based on the value of non-current discounts,it explores three basic assessment methods of equity liquidity discounts.Applicability.The study found that the main factors affecting the liquidity discount of equity are:capital market development,industry factors,buyer factors,the size of cash assets,the company's total annual operating revenue,the company's free cash flow,the size of the company,the size of the share transaction,the activeness of the company's equity transactions,and time factors.In the following studies,quantitative research methods were used to further investigate the influencing factors of equity liquidity discounts,and on this basis,a discount model for specific company liquidity was constructed.Then this paper discusses the measurement model of equity liquidity discounts in corporate valuation,including:fixed discount method,LACAPM model,option pricing model,specific company discount model,and large transaction discount model.And the advantages and disadvantages of these models and the appraisal methods are summarized.The research finds that the discount model of specific companies is applicable to the process of appraisal of corporate value by market method.The AAP option pricing model and LACAPM model are applicable to the evaluation process of income method.In combination with the largest M&A case in China's private health examination industry in July 2017,based on the characteristics of the case object as an unlisted company,the existing equity liquidity discount model was applied to the case.From the results of the case,the non-listed company The process of enterprise value evaluation should focus on equity liquidity discounts,and a reasonable measurement of equity liquidity discounts will make the assessment conclusion more reasonable.When focusing on equity liquidity discounts in the evaluation of corporate value of non-listed companies,besides focusing on factors commonly considered by the assessment object itself,market conditions,etc.,the applicability of different discount models should also be considered.