Financial Evaluation In Enterprises M&A In Shenyang Rubber Enterprise

With the constant development in the market of property right and the establishment of modern enterprise system, it becomes increasingly known that in market economy, an enterprise as merchandise producer is also a kind of merchandise itself, which can be appraised and sold on market. At the same time, the quick development of modern capital market has greatly promoted the flow of enterprise resources between different owners. In recent years, with the change of international economy and the rapid development of high technology, the trade of property right such as merger and acquisition, enterprise reshuffles, equity trade, venture capital investment, is vigorously developed, especially when center government emphasizes the revitalization of old industrial bases in northeast of China. Shenyang industrial enterprises also take this vital opportunity to make new progress including reintegration resources, the establishment of corporate brand, improvement of enterprise efficiency, and increase of enterprise profits. This paper is doing some attempt on analysis and assessment in Shenyang Rubber Enterprises.In Chapter One, it briefly introduces the definition and background of the theme in the paper, then it makes a preliminary analysis of the characteristics of business M&A and the definition, and more systematically introduces enterprise acquisition in countries such as the U.S. and European countries, and also ours. On the basis, in Chapter Two it theoretically introduces assessment methods of enterprise M&A, such as discounted cash flows in profit laws, profit rates law in relative value laws and EVA law. In Chapter Three it begins to link theories with the practical enterprise M&A which is in Shenyang Rubber Enterprises, providing financial supports from methods, concepts and the decision-making sides, and introduces basic background and financial situation of the M&A in the enterprises. In Chapter Four it assesses and analyzes respectively in side of evaluation findings, methods of payment and financing arrangements from cash flow, the length of the forecast period and the cost of capital for business acquisitions, meanwhile it also makes assessment and analysis on the main financial indicators of profitability, liquidity, growth capacity and comparison analysis so that to establish the assessment model. In Chapter Five it summarizes the financial results of a comparative analysis of the factors above, the conditions for use of evaluation results and analysis of factors. Finally it makes the predicted conclusions. The value of the enterprise comes from the cash flow basis on which the ability of the acquisition of respond. We have to be the value managers to realize the value of the enterprises and the reasons for creating such value. If my paper could bring some revelations to those who are working on enterprise profit, that's my pleasure.