The Measure Techniques Research Of Valuation Creation In Merger And Acquisation

Value creation is one of the main researches about Merger and Acquisitions. This paper studies the measure techniques of value creation in M&A, using different measure techniques to analyze actual M&A cases.When applying these techniques, the paper compares the different dealing process, for example, the different variables, models and data calculation processes. Basing on the calculation results, the paper presents the reasons of results differences. Then, it appraises the cons and pros of the different techniques and analyzes the applicability of the different techniques. At last, this paper gets the results: different measure techniques analyze the value creation from different aspects. In addition, they have their owns special inherent theory and limitations.So in order to analyze value creation of M&A deeply and reasonably, the studies must combine different measure techniques in the actual M&A cases.There are five parts, as following:Chapter 1 explains the goal and significance of the topic. Then it outlines the present related research in China and foreign countries. Further more it describes the main research content. Chapter 2 mainly discusses some of the value creation theories in M&A. It analyzes the process of value creation and factors of impacts . In addition, it introduces various measure techniques and the different results of existing researches, then it chooses three techniques to apply in the actual M&A cases, including event methods, financial methods and residual income model method.Chapter 3 applies the event study method in the actual M&A case. After observing and collecting stock prices per day in the event windows, the paper calculates the abnormal returns of stocks and uses statistic tool to explain the value changes before and after M&A.Chapter 4 studies the financial methods in the actual M&A case. It chooses some financial indexes, such as EPS, ROE, ROA, etc. through comparing with the data before M&A, it can estimate the effects of value creation.Chapter 5 develops a discounted residual income approach sometimes referred to as the Edwards-Bell-Ohlson (EBO) valuation technique in actual M&A case. Firstly, it introduces the background of the actual case. Then, calculate the result following model process and get the result that M&A create value. However, because of limitations of model, this paper makes sensitivity analysis and considers the drawbacks of this model. According to the calculation results, this paper discusses some macro value affects in M&A of HSBC.Chapter 6 reviews different results of existing relative researches and makes some suggesting for further academic research in this area.