| In recent years,with the continuous development of China’s economy and the continuous implementation of supply-side reforms,in the key stages of industrial transformation and upgrading and economic structural adjustment,some enterprises seek a wider space for development,and some traditional enterprises have to survive to find another way,and M&A is an important means to achieve industrial upgrading and optimize resource allocation,and is welcomed by many enterprises.At present,corporate mergers and acquisitions are showing a gradual development trend in the industry,and the amount and scope of mergers and acquisitions.However,there are more and more cases of failed mergers and acquisitions,which not only damage the interests of shareholders,investors and employees,but also hinder the healthy development of China’s economy.There are many reasons for the failure of M&A.Transaction pricing is one of the important factors.Therefore,M&A pricing is also favored by many scholars.M&A parties will consider many factors for pricing based on the target company’s asset assessment.The target company’s historical revenue and book value as important indicators of financial accounting information can help companies analyze past performance and deduce the future,which also makes The historical cost or book value of an asset has become a crucial reference standard.At the same time,in the process of M&A pricing,due to the different strategic objectives of the merger and acquisition,differences in asset evaluation methods,and management overconfidence,it will affect the historical earnings and book value of the target company,which will ultimately affect M&A pricing.In view of this,this article explores the correlation between merger and acquisition pricing and the target company’s financial accounting information and historical revenue from different perspectives,so as to have a more comprehensive understanding of merger and acquisition pricing,which is used to improve the success rate of merger and acquisition transactions,adjust resource allocation,and promote enterprises.The realization of transformation and upgrading and the realization of supply-side structural reform goals have important theoretical and practical significance.After sorting out and summarizing the literature on merger and acquisition pricing,the role of accounting information valuation,and corporate value assessment,this article discusses the relationship between pricing and the book value and historical income of the target company from the perspective of the development strategy of the merger and acquisition company,the asset evaluation method of the target company,and the overconfidence of the managers of the merger and acquisition company.At the same time,an empirical test was conducted on the research object of the implementation of 100% equity mergers and acquisitions by Chinese A-share listed companies from 2009 to 2019.The research in this paper finds:(1)If the main merger company adopts a diversification strategy,then when conducting merger and acquisition pricing,paying more attention to the book value of the target company,that is,diversified mergers and acquisitions,will significantly strengthen the positive correlation between merger and acquisition pricing and book value;(2)If the main merger enterprise implements horizontal mergers or vertical strategy,here will be no significant difference in the two strategy.In horizontal or vertical strategy,the main merger in order to exert greater synergies,will pay more attention to the various hidden assets of the target enterprises,such as product reputation,suppliers,customer resources,market occupation technical qualifications and management experience,and so on;(3)Adopt The asset-based approach evaluates the enterprise value of the target company,so the M&A pricing is more relevant to the book value of the target company,while the income method is used to value the enterprise,the M&A pricing is more relevant to the historical income of the target company;(4)the main corporate managers’ overconfidence will lead to higher pricing,and the premium part is significantly positively related to the book value. |
