Research On Value Assessment In Process Of M&A Of Generate Electricity Group's Technological Innovation Strategy

Merger & Acquisition is an important way that the enterprises carry on the capital expand and strengthen the technological innovation capability. Based on studying M&A theory of the western developed country, the enterprises strategy theory and classic cases of M&A as well, this paper mainly discussed the construction of technological innovation strategy. First, it analyzed the inside and outside environment of our electric power industry, then summarized the type and particularity of M&A in electric power industry. Aimed at acquiring core competition capability, this paper built the electric technological innovation strategy, which is electric power dominant technology. Furthermore, after the comparison of both inside and outside implement method of the strategy, this paper makes clear that M&A method is a very effective way to get the goal.Value assessment is the base of M&A pricing process and somehow determines the whole M&A activity. This paper first make sure the important role of the value to enterprise, then summarized the type of value emerging in M&A activity and the main methods that been used in value assessment. Free cash flow of enterprise which is classified in different stages by future cash flow has been discussed and a case has been given to measure the tangible asset. This paper aims at setting up one suite of evaluation indicator system which is objective and quantifiable. After setting the technological innovation capability indicators, AHP evaluation method has been used to quantify each indicator. Faced with the difficulties and inefficiencies in M&A of electric power industry, electric power supervision is needed and some useful suggestion has been given in the end of this paper.