Research On The Evaluation Of M&A Growth Enterprises Based On Residual Income Method

In recent years,with the arrival of the "new normal" of China's economy,the economic growth rate has slowed down,industrial upgrading and enterprise transformation have become the general direction of the society seeking economic development,and the wave of mergers and acquisitions has been constantly emerging.M&A development strategy as one of the important means of enterprise growth,compared with the development model of endogenous growth based on the accumulation of enterprise's own wealth,can help enterprises quickly obtain the technology,market,products and other resources needed for survival and development,so enterprises are more inclined to the path of M&A development.At present,there are two ways for enterprises to integrate resources in M&A: one is to adopt its own capital,the other is to introduce M&A funds,both of which are favored by enterprises.However,regardless of the way the merger and reorganization,corporate valuation is critical to the success of the merger.At the same time,the research and application of value evaluation for M&A growth enterprises has important practical significance for the development of various industries,but at present,most of the domestic research on enterprise value evaluation is still limited to the theoretical and empirical level.M&A is an important way for the rapid development of enterprises.Through horizontal,vertical and mixed mergers and acquisitions,the company can quickly expand its business scale,enhance its position in the industrial chain,and achieve diversified development.Mature capital markets,such as the United States and Europe,have experienced six wave of mergers and acquisitions,each with technological progress and industrial capital accumulation,and achieve the purpose of optimizing the allocation of resources and promoting social and economic development.The history of industrial development in developed countries gives us enlightenment.With the development of each stage of a country's capital market,M&A is the only way for enterprises to control costs,seek the integration of external resources,and improve the layout of industrial chain in order to achieve diversified development.Boya is a pharmaceutical company with the vision of "becoming a world-class blood products company and a respected pharmaceutical group ".At the same time,the company insists on taking the extension strategy of M&A as the enterprise strategy,and takes advantage of the investment advantage of the major shareholder Gao Tejia in the medical field to enter the pharmaceutical field which can quickly form the market segment advantage,quickly integrate the industry resources,enrich the industrial structure,and realize the double wheel drive of "industry + capital ".At the same time,the company belongs to the national key development industry,and the development mode of M&A growth has obvious strategic advantages in the industry,which also lays the foundation for the enterprise to become a respected pharmaceutical group.In order to effectively evaluate the strategic value and enterprise growth model of such M&A growth companies,this paper uses surplus income model to evaluate their value.This paper adopts a combination of theoretical research and case analysis.First of all,this paper combs the literature at home and abroad,summarizes the various research views on the growth of M&A and the residual income model.On the basis of analyzing the characteristics of M&A in growth enterprises,the connotation and application conditions of residual income evaluation method are deeply discussed and studied.In the case study part,the feasibility and effectiveness of residual income value evaluation model based on the characteristics of M&A growth enterprise are verified by taking the value evaluation of Boya as the representative case,and the application significance of residual income evaluation method in M&A growth enterprise value evaluation is summarized,and the enlightenment is summarized from three angles: supervisor,manager and investor.The research shows that :(1)the enterprise value evaluation can not be separated from the economic and financial environment,and it is necessary to analyze the characteristics and advantages of macro-economy,industry development and its own development in a comprehensive way,and to analyze the economic environment,enterprise present situation and development trend in depth is the basis to ensure the effectiveness of value evaluation.(2)The prediction of enterprise value is based on the existing historical performance of the enterprise,and it is necessary to analyze the historical financial affairs of the enterprise,understand the profit level and the source of value increase of the enterprise,and provide a reasonable basis for the operation,investment and financing assumption of the enterprise.(3)Value assessment is subjective in nature,considering the impact of the external environment,we can carry out an interval valuation of enterprises,so as to make the valuation of enterprises more realistic and provide effective suggestions for the future development of enterprises.