Research On CRO Enterprises Value Assessment

With the aging of the population and the increasing awareness of health care,the global health care market continues to grow.As the product of specialization in the pharmaceutical industry chain,the CRO(Contract Research Orgnization)industry is booming around the world,and the mergers and acquisitions within the industry keep happening.The issue of valuation is involved in the merger and reorganization activities.If the enterprise cannot be reasonably and accurately valued,it will cause losses to managers and investors.Based on the above background,the content of this article is arranged as follows.Firstly,introduce the research background and significance of this article,summarize the existing literature on enterprise value assessment methods and unique risk research,and elaborate the research content of this article.Secondly,analyze the development status and trends of the CRO industry,as well as the value characteristics of CRO companies,and summarize the evaluation factors that affect the unique risks of CRO companies.Thirdly,based on the analysis of the limitations of several commonly used enterprise value assessment methods,this article explains the thinking of CRO enterprise valuation.Specifically,using the AHP and Fc E method to quantify the unique risks of CRO companies.The main purpose of this part is to construct a CRO enterprise-specific risk evaluation system and determine its weight coefficient.Finally,a representative company in the CRO industry--Wu Xi App Tec was selected for the case study.The results show that the FCFF model considering firmunique risk is effective for the valuation of CRO enterprises,and the firmunique risk evaluation system constructed in this paper is reasonable.