The Investing Value Evaluation In The Merger And Acquisition

At present,with the rising cost of enterprise labor and the rapid reduction of the price of electronic products,traditional electronic service manufacturing enterprises generally fall into a state of low profit or even loss.With the development of 4G communication technology,the Internet of Things,the era of big data and cloud computing is accelerating,and the market of optical communication connectors is growing rapidly.F company plans to use its good financial strategy to merge A company and lay out optical communication connectors to promote its rapid development in the field of high-speed transmission.Value evaluation is an important part of M&A.It runs through the whole process of merger and acquisition and directly affects the success or failure of M&A.How to effectively evaluate the investment value of M&A objects has become the focus of M&A activities.Based on the literature review and the related theories of M&A and value evaluation,this paper studies the investment value of target company in the process of M&A by using qualitative analysis and quantitative research methods.Firstly,the paper analyses the internal and external environment of M&A and the operation situation of both sides,and expounds the strategic motivation of F company's M&A.Secondly,it analyses the composition of the investment value of A company and establishes the evaluation model for the investment value.After that,it evaluates the internal value and synergistic effect value of A company by discount cash flow method and B-S model respectively.Finally,it gives the evaluation results and the related strategies and suggestions of M&A are put forward.It is hoped that this study can help F company to determine the transaction price and promote M&A integration,provide scientific and reliable basis for M&A decision-making of F company,thus improving the success of M&A transactions and accumulating valuable experience for M&A activities of F company.