Research On Motivation Of Chinese Enterprise's Cross-border Mergers & Acquisitions And Target Enterprise Value Assessment

With five large scale M&A investments, many enterprises in developed countries have finished industrial upgrade and optimized the distribution of resources in the past one century, and built up their situations in market. With the development of global economy, the tide of cross-border M&A is increasingly hot and marginally replacing the "Green-field Investment", which was the main style of Foreign Direct Investment. Since our government pushed the policy of market economy, many enterprises had begun to invest in international market by cross-border M&A. Especially, after 21st came, many successful cases happed to Chinese enterprises, which attracted the world. However, our enterprises didn't go too far in cross-border M&A, that whether the current theories on cross-border M&A case can match or not is not proved. Therefore, on the basis of summarizing the present features and trends of Chinese enterprises' cross-border M&A, and analyzing the feasibility the mature theories on cross-border M&A, this paper will explain more deepen motivations why enterprises in China prefer to cross-border M&A.It is mostly important that how to assess target enterprise value for buyers after they have known their motivation of buying other foreign enterprise. At present, there are three different methods to evaluate enterprise value. But we are not sure which one of them is more suitable for cross-border M&A. Therefore, after analyzing the reason of cross-border M&A, on the basis of the principle that every reason should be matched with one method, according to the features of cross-border M&A, this paper tries to compose corresponding value assessment model, which can be used to evaluate target enterprise.This paper is divided into five parts as follow,Part one, preface. Which introduce background, meaning, content, purpose, method and technique difficulties that will happen to this research.Part two, research on motivation of cross-border M&A. Firstly, this part summarizes " what is cross-border M&A" and the basic theories on it. Secondly, analyzing the history, current situation and character of cross-border M&A happened to enterprises in China, then trying to find out the applicability that theories on cross-border M&A are used to explain the cases. Thirdly, according to the conclusion obtained, three reasons are deduced, namely, obtaining natural resources, nuclear technique and market quota and enterprise brand of target enterprise. Finally, explaining these reasons by three real cases.Part three, comparing and analyzing all kind of methods on enterprise value assessment. Cost method, market value method and income discounted method will be introduced, and whose characters and usage are compared in this part.