Study On Evaluation And Merger Of The Supply Water Company

The enterprise not only is a property constituted by the material, but also anorganization operated by person. It is not a production factor to pile up, but one integration.So the value of the enterprise is consumedly higher than the pileup of resource value of theenterprise. When we purchase a part of properties of an enterprise, we have nothing to do withthe right of the enterprise. By contraries when we merge an enterprise, we are in possession ofthe right that enterprise owns besides the control right of it.The price of the target enterprise is one of the most important factors which affects thedeal of enterprise merger. We should evaluate the value of enterprise accurately by the fitmethod according to its concrete circumstance. The income method and the property methodare carried out to evaluate the value of the enterprise in common.The basic principle of the income method is that the value of an investment is the currentvalue of the income in future and the discount rate is a reflection investment. The discountrate decided by market is some repayment rate which is good enough to attraction investment.Although past management achievement and other history information have certain leadingfunction to the assurance discount rate, the expectation of the enterprise operation is the keyto evaluate the capital cost. The past management achievement shouldn't be the factor that theinvestor favor most because an investor throw his capital into the company to expect that theenterprise can provide the big repayment in future.The property method fits the valuation of material or immaterial assets, for example...