A Research On Valuation Of Merger And Acquisition

In new era many Chinese publication houses, boosted by the state policy reformation, have been transferred into share holding companies, and deliver their readers with new products. Besides that, their business modes are changed and by integration huge publication house groups are set up, with capital operations like IPO, M&A, reconstruction, and financing, etc., revitalizing the publication business, in which M&A or reconstruction becomes normal operation. As there is few local study on the valuation of M&A in publication houses, this paper discusses some issues on it, coming up with Free Cash Flow(FCF) as the tool more suitable on the M&A valuation.There are five sections in the paper. The first one is the introduction to present the background and the global study status quo. In the second section M&A theories are introduced and some comments and analysis are made on local/abroad publication houses. The outlook of publication M&A is made. In the third section, make comments and introduction on some valuation methods, by the company value, and highlight some issues on the M&A valuation of publication houses. In the forth section with some cases to analyze the valuations on some publication houses M&A, by the tool of FCF. In the fifth section, the weakness of the study is concluded, some advices on the valuation presented.