Case Analysis On The Selection And Valuation Of Target Enterprises In Merger&Acquisition

With the in-depth development of Chinese listed companies sub-owned shares reforms, people pay more attention to the intrinsic value of the enterprise. A lot of Merger & Acquisition (M&A) cases took the valuation as core. How to determine the appropriate purchasing price by using correct valuation methods and make a scientific M&A decision about the enterprises choice, are the important parts of the current M&A cases in China.Based on the methods combined the theory and practice, theories research and case studies, qualitative research and quantitative research, this thesis tries to learn from the actual experiences and results of M&A cases in China and foreign counties, choose the valuation methods, avoid M&A errors, enhance merger performance, find the ways of choosing the M&A objective enterprises. The main contents are the origin of the questions, the purpose and significance of the study, the ideas and methods of the research, the main content of papers; introduces correlative theories, the status problems of the study about the valuation and the M&A in China and foreign countries, demonstrates two typical models of the valuation; are about the analysis system and general procedure of the target enterprise and the methods of economic feasibility analysis in M&A; the thesis analyzes the status of the mechanical and electrical equipment manufactures, according to the characteristics of the listed companies, chooses DCF model as the principal of valuation. The thesis uses DCF model to assess the value of Yinhe Technology purchasing Changzheng Electronic Appartus co.. Ltd., analyzes the feasibility, and uses the PE models to exam it. The last part sums up the paper, emphasizes that it is a great significance for the mechanical and electrical equipment manufactures to establish the analysis system and the general procedure, use the correct valuation methods, make the M&A decision on selecting the target enterprise and the price.