A Research On Valuation Assessment And Pricing In The Auto Industry Cross-border M&A

Since the 1990s, the world auto industry has a serious surplus production capacity and the traditional market has become saturated increasingly, so China's huge auto market has become the hot spot for major multinational companies. China's auto industry has become the important part of the world auto industry. In order to introduce advanced management and high technology, China's auto enterprises also have cooperation with foreign investors.As a transaction, Cross-border M&A can't be depart from the enterprise value and pricing issues. Enterprise value is the basis for pricing and the price is the core issue of the negotiation between sellers and buyers. The transaction prices whether reasonable or not directly related to the success of the M&A and our national interests. So it is meaning to study the enterprise value assessment and pricing in the auto cross-border acquisition.Guiding by the economics, financial management, statistics, cross-border M&A theories, and going with the main line of the value assessment and pricing issues, this paper introduces the cross-border M&A theories and analyzes the method of the enterprise value assessment, the synergy effects, the pricing factors, the auction pricing method and the Dongfeng Nissan merger case by using the qualitative analysis, quantitative analysis, case analysis, comparative analysis and drawing of the forefront research results about the cross-border M&A, enterprise value assessment and pricing. At last, this paper gives some suggestions about the issues existing in the auto industry cross-border M&A. This study considers that Chinese auto industry's lower ability, "the absence of the owner", and other issues resulted in the low acquisition price. For resolving the problem, the paper considers that we should purchase a competitive market pricing mechanism to reverse the inferior positions in the "one-on-one" negotiations. The Dongfeng Nissan merger case is a relatively successful case from which China's auto industry could gain experiences.