The Study Of Income Method Model In Enterprise Value Appraisal 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.This article introduced three common methods of value assessment, and analyzed the advantages and disadvantages of each of the three methods, and then we found that Income method is the best method in value assessment in M&A. Then the principle, application premise and the three factors of Income method are introduced in detail. The application of Income method in the assessment of target enterprise has problems in our country, and they are still analyzed in the paper, and the solutions are proposed.With the theoretical analysis, we selected Haier Group- Founder Technology Group Corp. as a case study. The enterprise value is assessed by Income Method. Both for the buyers or investors, the results are meaningful.This paper expounds the theory with actual receipts in M&A value assessment of enterprises. We hope to make a positive improvement to the current situation that is cost method supplemented Markets method are widely used in value assessment in our country; assess the current state of the industry in the work of the assets attached to the most cost-law played the market valuation method a positive improvement, and on the other hand we hope that the valuation of target enterprises to reduce errors caused by the failure of the merger, on the other hand we hope that the failure of the merger can be reduced caused by the errors of valuation of target enterprises.