The Evaluation Of The Acquired Company In Strategic M&A

With the gradual deepening of China's economic reforms and domestic and international economic environment, the development and changes to mergers and acquisitions as a means of asset reorganization in our country has made great progress, but also greatly promoted China's economic growth and corporate power . On China's current M & A In practical terms, there is the pursuit of short-term interests of a large number of mergers and acquisitions, China's enterprises must change their concepts, starting from the enterprise to conduct its own strategic acquisitions, through mergers and acquisitions and integration of resources to improve their own competitiveness, enabling enterprises to respond to increasingly intense competitive environment .In this paper, in this context, the first domestic enterprise value assessment of the relevant literature review and collation, analysis of the status quo of China's mergers and acquisitions, several of our existing M &A; A model to compare the mainstream, combined with Western countries, the development of M & A activity advanced experience and found that the present stage the main drawbacks of several mergers and acquisitions, find the cause of China's main reason for the high failure rate of mergers and acquisitions, make China's enterprises in order to fundamentally improve enterprise competitive level, we must concentrate on cultivating their own strategic advantage, advantages of enterprise integration strategies for mergers and acquisitions are an important way to strengthen and expand resources. ThenCorporate value through M &A; A principal means of assessing comparative analysis, combined with strategic acquisitions of its own characteristics and proposes that the discounted cash flow method and the method of combining option model applied to the strategic objectives of M & A business valuation can also consider the intrinsic value of the enterprises themselves and have some uncertainty option value, is a more comprehensive estimation method. By 2007 KeLiYuan subscribed by non-cash assets to acquire new force element analysis of case material, this acquisition, which is to integrate the upstream and downstream industry chain, access to industry collaboration for the purpose of the strategic mergers and acquisitions are a typical case, this article try.DCFF-option pricing model valuation of target companies, to verify this method, finally, summing up and summary of the articles come to the use of discounted cash flow method and real option model of the method of combining a relatively perfect in theory and have the actual operational, but there are a number of deficiencies, the need for further refinement and improvement.