An Research On Motivation And Valuation Of M&A Of Domestic Listed Company By Foreign Capital

Main content and viewpoints: In this paper, we review the common M&A motivation, international M&A motivation and relevant empirical result. On the base of the review, considering the specific situation of Chinese securities market, we analyze the motivation of foreign capital take M&A of Chinese listedcorporation. According to the motivation, we distinguish two different M&A——strategic M&A and financial M&A, suggest using different method to evaluatethe enterprise price.This article was divided into seven parts:In the first section, we should introduce the topic background, mainconceptiomframe, and the innovation.In the second section, we would list the literature review and hypothesis\theorydevelopment. We pay more attention to the hypotheses\theory: M&Amotivation and enterprise value.In the third section, we review the development of foreign capitals' M&A, andanalyze the models of foreign capitals' M&A.In the forth section, we discusses the theories of enterprise valuation.Enterprise valuation method is not made only by enterprise asset, in theinternational M&A, the motivation of M&A decide the valuation method in someterm.In the fifth and sixth section, we studies the methods of enterprise valuation oftwo types of M&A systematically. Firstly, We have found that the content of thediscernment should contain assets type, synergy effect type, real options typesource of value and their properties and status. Secondly, two types of M&Ahas different content of valuation. Thirdly, we choose the reasonable method toevaluate the enterprise.In the last section, we analyze the process and steps of M&A, especially somequestion we should emphasize.