Valuation Methods And Application In Mergers And Acquisitions Of Companies

It' s more and more important to valuate the value of the company because of the economic phenomenon such as coming into the market, Acquisition, mergers etc. under the environment of today' s marketing. After experiencing five tidal wave of M&A, global M&A has developed with the innovation of the tools of M&A. Valuation has gradually got application and perfection in every process of M&A. China also mends her pace with the development of global economy. But Valuation of M&A in China hasn' t been perfected with the development of M&A. On the basis of summarizing overseas and domestic valuation of M&A , this thesis tries to introduce some perfect valuation methods of overseas according to the Chinese M&A status. And I have discussed the applications of these valuation methods to china with a case which I experienced in work. In the analyses of this case, I added some analyses of the factors which influence the valuation of company F. So we can valuate the valuation of company F entirely and objectively. We divide the analyses into trade structure and competition the company F self. In the analysis of trade structure and competition, we introduce the five competitive theories of Michael port. With the theory we consider the valuation of companyF systematically. In the analysis of company F itself, we introduce the analysis method of SWOT. We forecast objectively the company' s work in future with the analysis of the company F' s strengths, weakness, opportunity and threatening. On the basis of these analyses, we forecast the basic data of objective company with measurability. Then we exert free cash flow discounting, capital value and economic value added discount to value the company F. We also compare every result of these valuation methods in the case. And we get the conclusion that the result of free cash flow discounting is reasonable.