The Study On Value Evaluation System Of Target Firm In Enterprise M&A

M&A is a inexorable result of market economy development, it is also a economic behaviour of equity transactions. In enterprise M&A, value evaluation of target firm is the core of process of M&A, which is determine the final results of M&A and effects the follow-up reconstruction and integration.It is not enough systematic and deepen on studies of target firm value evaluation in domestic and international countries. Methods that are relative mature, such as method of asset adding, market evaluation method and discount cash flow method, which explain the enterprise value from different point of view and construct relative mature model, but they have deficiencies.I redefine the value evaluation of target firm, trying construct a new system more scientific, more reasonable and more fitted for China, which constitute by present value, potential value and premium price of M&A. Actually, value evaluation of target firm is the evaluation of these three parts of value. Additional, M&A risk should be evaluation in order to making value of target firm is more objective and more scientific by amending value of M&A.The innovatory point of this article lies in that we put value evaluation of target firm in enterprise M&A in a systemtic analysis frame, construct a system which contain evaluation thought , evaluation content, evaluation indicator and evaluation constructer. Furthermore , from the point of value constitutions of target firm of M&A, target firm value is induced present value, potential value and premium price of M&A, designing finical indictors that is main specific gravity and comparative completed and non-finical ones that is sub-gravity ,we can accurate and scientific evaluate the value of target firm.