Research On The Application Of Income Method In Valuation Of The Company

In the process of enterprise merger and acquisition,the evaluation of target enterprise value is an important part of the whole transaction,which directly affects the transaction price at the time of merger and acquisition,the interests and decision-making behaviors of both parties of merger and acquisition,the future operation of enterprises after merger and acquisition,and even the key to the success or failure of merger and acquisition activities.Under the background of the continuous development of China's society,phosphating industry,as an important branch of the chemical industry,its products are mainly applied in the fields of agriculture(fertilizer),industry(materials,electronics,aerospace,etc.),food andmedicine.Phosphate,afoodadditive,hasbeenwidelyused inthefield offood processing since the 1980s,because it can improve the structure and taste of food and increase the mineral nutrition of food.Compared with other enterprises,from the perspective of this industry,there are prominent problems such as low industrial concentration,prominent phenomenon of "three nos"(no leading enterprise,no well-known trademark,no good quality reputation enterprise),low enterprise benefit caused by price competition and weakening of product quality guarantee system.In order to effectively solve the existing problems in the industry,to achieve the quality,efficiency,health and sustainable development of the industry,the reorganization of enterprises within the industry and will become an effectiveway.Specification method,case method and contrast method is applied in this article,after summarizes the basic theory of enterprise value assessment,the particularity of light assets of enterprises and their evaluation are analyzed,and then elaborates the general situation of the case B company mergers and acquisitions valuation,then analyses the cases,including the evaluation methods are used by the choice of case analysis,the determination of model parameter analysis and the analysis of the key points that should be paid attention to when valuations,etc.Explore the deficiencies and difficulties in the evaluation of B company,and get relevant enlightenment and Suggestions.This has certain practical significance to the future m&a valuation of asset-light enterprises.Based on the income method and cost method to assess the value of B company,and it is concluded that the superiority of income approach,and then analysis the revenue method,the problems in the process of mergers and acquisitions,such as enterprise information not enough comprehensive,evaluation personnel's quality improvement and the change of the influence factors of uncertainty,and so on,by putting forward the corresponding measures to avoid these problems,such as making reasonable mergers and acquisitions investment strategy,the rational selection of various parameters,income method,reduce the risk of pricing and establishing and perfecting the accounting supervision system,improve the quality of accounting personnel.Hope that through these measures,reduce the risk of m&a goodwill impairment.In addition,through systematic analysis,acquirers can fully understand the target enterprise's future profitability and competitive advantage,so as to avoid losses to the enterprise.