Case Studies On Evaluating Target Enterprise In Mergers And Acquisitions

With the globalization of economy and the adjustment of local industrial structure developing fastly,as one of the important way of collocating social resource,Mergers and Acquisitions(M&A) is playing a more and more role in China capital market.M&A is increasingly active.Valuating reasonably in M&A is vital to choosing the target enterprise and the price decision-making of it.It is benefit to improve the probability of success in M&A to enhance the research of valuation.Valuating in M&A has succeeded the general theories and approaches of valuation.The general models of valuating are expatiated in the dissertation.And the traditional theories of valuation and their alternative forms under other conditions are the emphasis of introduction.The strengthes or defaults between the Real Options Pricing Model and the traditional valuation madels are compared here.Although the Real Options Pricing approach can valuate the optional right commendably that is ignored by traditional theories,it want to be applied widely still needs some time.In practice,the traditional approaches of valuation are applied widely.Especially,the Discounted Cash Flow Model (DCF) is a valuating approach in common use at present.The dissertation has studied the programs of valuation and their alternative under different conditions by DCF.Then the price scope of target enterprise is given.Valuation in M&A is a combination of Science and Art.Experiences and judgment of valuating people are important to the choice and application of valuating approaches,enhancing the veracity does so.In the end,the dissertation has studied the valuating approaches in the case of Yanjing beer co.'s incorporating Huiquan beer co..The conclusion of the case study indicates that valuation will be helpful to the price decision of M&A.