Research On Real Option In Different Stages Of Enterprise M&A

M & A is an important means of capital operation, from the late 19th century to the beginning of this century, with economic integration,deepening of globalization and technological progress, M & A activity continued to expand, which has become an important role in global economic activity. The success of M & A has an important impact on the global economy growing. The key point of success is the correct assessment of the value of M & A projects. The value of M & A not only includes the target enterprise value, but also includes a variety of implicit real options value in the various stages of M & A process.On the base of scholars' study of valuation and M & A, this paper leads into real options analysis, divides various types of real options, and divides M & A process into three stages, which are preparation stage, medium-term and post-integration. Through qualitative and quantitative study, I analyze various real options in the three stages and get the analysis method of phased real options. The analysis method of phased real options believes the integrated value of M & A activity will change in the different stages of M & A progress, the integrated value includes the net present value of projects adds the real option value in each stage. The change of environment and enterprise decides the integrated value of M & A projects is very uncertain in every stage, so we can't think the value of the entire M & A is only the initial assessment of the target enterprise value. The analysis method of phased real options changes the decision-makers' traditional "line" thinking in decision-making, make decision-makers concerned about every stage of M&A.give more rights to adjust the assessment of the value of M&A projects in accordance with the changes of market conditions,SO decision-makers can choose the best route in the many routes.