Study On The M&A Valuation Of Information Technology Service Companies

Since the 21st century,with the vigorous development of our market economy,enterprise competition is becoming increasingly fierce,M & A transactions have also mushroomed.M & A of information technology service enterprises is very prominent in M & A and reorganization transactions.Shareholders and other outside investors use the process of M & A and reorganization to consolidate and optimize the assets of a company and achieve the goal of corporate profit maximization.After assets M & A and reorganization,the competitiveness of enterprises is strengthened,which is beneficial to enlarge the scale of enterprises and produce synergy effect.However,in this process,how to accurately and reasonably assess the value of the assets of the target enterprises is particularly important,which puts forward higher development requirements for the industry of asset evaluation.In particular,for the information technology services sector of M & A valuation.Information technology service industry is a new industry,with the characteristics of light assets and uncertain assets,which brings new challenges to the selection of valuation methods.The traditional valuation methods include cost method,market method and income method.There are some limitations in the valuation of M & A of information technology service enterprises.How to choose a suitable valuation method and evaluation model for Information Technology Service Enterprises has an important impact on the M & A of information technology service enterprises.Firstly,this paper reviews the relevant literature at home and abroad through literature research method,and analyzes and summarizes the relevant literature of cost method,market method,income method and real option evaluation model.Secondly,taking Y company ’s merger and acquisition of G company as an example,this paper introduces the basic situation of Y company ’s merger and acquisition of G company,as well as the financial situation of Y company and G company in historical years,and analyzes the applicability of traditional valuation methods to Y company ’s merger and acquisition of G company.Thirdly,the applicability of the real option evaluation model to the valuation of Y company ’s acquisition of G company is analyzed,and the valuation results of the real option evaluation model are obtained by factor selection analysis.Finally,the valuation results under the traditional valuation method and the valuation results of the real option evaluation model are compared,analyzed and verified.On this basis,the shortcomings of the traditional valuation method for the M& A valuation of information technology service enterprises are pointed out,and the real option evaluation model is clearly introduced as a useful supplement.The practical value,and at the same time put forward suggestions for the application of the real option evaluation model,so as to promote the M & A valuation of information technology service enterprises more reasonable.