Research On Valuation Of XZ Company Based On Real Options

China's pharmaceutical industry is developing rapidly,but the R&D,manufacturing and sales capabilities of a single pharmaceutical enterprise are weaker than those of large international companies.Merger and acquisition is a good choice for the rapid growth of pharmaceutical enterprises.XZ Company is a pharmaceutical company deeply cultivated in southwest China.It integrates medical treatmentj pharmaceutical manufacturing and pharmaceutical circulation.It has a strong competitive advantage in southwest China,especially in Guizhou Province.Yuheng Pharmaceutical Company is a national pharmaceutical company.It has transferred 21.04%of the shareholder of XZ Company and actually controlled XZ Company The two companies have complementary advantages in their business.In the process of merger and acquisition,the process of evaluating the value of the target enterprise is the core link.It is of practical significance to study the valuation of XZ in the merger and acquisition.This paper selects YH company to acquire XZ as a case,mainly focusing on the value estimation of equity transfer,the reason of the difference of actual transaction value,and the realization of the value of M&A options.First,describe the background of YH's acquisition of XZ,analyze the enterprise characteristics of XZ,analyze the XZ business characteristics and business environment,XZ equity structure and XZ financial indicators,obtain the operating and financial management characteristics of XZ company,and think about the XZ transaction time.There are problems.Secondly,the real option method and the discounted cash flow method are used to evaluate the value of XZ.In the process of actual operation,it is not appropriate to use a method to evaluate the value completely.In order to avoid the error of valuation,the valuation is improved.Reliability,using the cash flow discount method and the real option method,the valuations of each method are weighted by a certain proportion,and a reasonable valuation result is obtained.Further analysis and comparison of the actual transaction witih the results of the valuation,so as to get the root cause of the difference between the two.Get the reason for the difference between the two.The evaluation results show that although the valuation results of the two methods and the weighted average stock price result are higher than the equity transfer price,this does not mean that the value of the enterprise is overestimated,which just indicates that the transaction was subject to the sluggish capital market at the time,XZ original.The controlling shareholder is eager to let go,and the resulting transaction results are a veiy cost-effective transaction for the transferee YH.Finally,it provides corresponding measures for the realization of the option value in the process of YH's acquisition of XZ,and enhances the value of XZ.