Study On The Pricing Of National Enterprise In Foreign Capital M&A

Under the new situation of global economy integration, the international capitals' flow shows a new trend that Cross-border M&A has emerged as the main approach of Foreign Direct Investment (FDI). However, M&A investment only accounts for a small proportion of Chinese total utilization of FDI, which is incongruous with the means of the international capitals' flow. The foreign Capitals' M&A of national enterprises is still in the process of institutional changing. It is suggested that China should manage Foreign Capitals' M&A rationally, while foreign capitals have been adopted actively, reasonably, and effectively. Moreover, to meet the tremendous challenges brought by the entry of international enterprises swarming into Chinese market, Chinese enterprises must adapt themselves to the new environment, seek for a more reasonable developing method during the institutional change, and try to creat a win-win situation. Therefore, reforming nationalization enterprises' system and integrating Chinese economy with international economy by M&A should be an appropriate method.How to make a price is the first question in Cross-border M&A, the core of the negotiation, and the gist of this paper. If they made an unsuitable price, M&A would not happen and say nothing research on creating value and assessing performance. The final price of target enterprises is the deal price in M&A, which is not only to evaluate price. The evaluation purely makes use of the accounting record, so it's only the base of deal price in M&A.M&A is a kind of corporations' behavior which is according to economic running rules. Government should make an influence on guidance and harmony. The M&A market is a standard in foreign countries and governments hardly affect the M&A, so M&A can go along in rules. However, due to system's defect, corporation's M&A has been intervened deeply by government in China. And the government affects the development of Cross-border M&A, such as the enterprise lacking of M&A, depreciating selling and losing state assets. In this paper, we analyze three partners' rates on M&A from the aspects of the nationalization enterprises. Throughthe analysis of the national enterprises can decide whether it can possess of corporation's M&A and how to do with corporation's M&A, so it can promote corporation's M&A in an open, fair and fair progress.This paper adopts comparison research, qualitative analysis, quantitative analysis and so on. It is divided into five parts. In the first part, correlative results of domestic and foreign countries, correlative theories and terms definition have been summarized. The second part introduces the development of Cross-border M&A in China and foreign countries, as well as the main method of Cross-border M&A. The third part presents three important participants, namely the Chinese government, national enterprises and foreign enterprises. The fourth part describes how to make a price in detail. The fifth part sums up the whole writing and makes an outlook in the future.