Value Appraising In M&A

With the development of Chinese economy, corporate M&A will become the hot point in the Chinese economic growth process. As the core of M&A process. goal enterprise's value assessment will be more and more important. it will deeply affect successful negotiation and strategy realization .In the buyer's side ,this article provides the theory foundation for the method of enterprise's value assessment, considering the effect of synergies, analyzing the method of discount cash flows, then this article select a list firm as case study in order to learn what to get.Chapter 1 summarize the methods used in the enterprise's value assessment, introduce the precondition of each method.Chapter 2 while the effect of synergies determines the amount of premium merging we have to pay, merely appraising the market value of goal enterprises is not enough. This article discuss the reason of synergiesChapter 3 the article discuss the condition of using the method of discount cash flows, how to consider the synergies in using this method and the suppose in case of on the assumption that hypothesis condition of case analysis.Chapter 4 set forth the problem in using the method of discount cash flows to analyse the goal enterprise.Chapter 5 concludes all research results above, and brings forward some suggestions about fact handle.