An Empirical Research On M&A Performances Of Listed Company In China Based On Real Options

The evaluation of M&A performances is one of the core issues of M&A. The real option theory affirms the strategic value derives from the adaptability and flexibility of assets and resources, and distinguishes the evaluation of M&A performances based on real options from other M&A performances evaluation methods. The real option theory arises that the enterprise value is consists of the economic value and the real option value of prospective uncertainty, and that leads to a new approach for the evaluation of corporation value.The thesis first introduces the background and significance of the research, the research activities home and abroad and the frame of the thesis. Then expounds the associated theoretic-cal knowledge in detail and defines the M&A performances based on the real option theory. By analyzing the optional features of M&A, the thesis describes the significance of applying real options theory in the evaluation of M&A performances.The main part of this thesis is the establishment and application of the evaluation of enterprise M&A performances R-0 model. The model composes of three parts:The "real assets" value calculated by DCF.The real option value of target enterprise.The real option value of acquiring corporation.By summing the three parts and subtract the counter-performance, we had the final result. For describing the application of the model, we choose the "acquisition of First Automotive Works and Tianjin Automotive Works" as a case to show how the model works. Using sensibility analysis to ascertain the influence of each factor.