The Research In Valuation Of A's Target Companies In Mergering

At present China is the third largest merger and acquisition market after Japan and Australia in the Asia-Pacific region。The transaction amount of mergering for Chinese listed companies grows from 37.5 billion dollars in 2005 to 111.5 billion dollars in 2009, and the average annual growth rate was 72%. In such an active merger market, how to evaluate target companies in a reasonable way is the key element to determine the success of merger activities. Therefore, there is a practical guiding significance to research the valuation methods of mergering target companies at present.This paper emphasis on linking theory with practice and tries to put the current value assessment theory into practice effectively. This paper contains theoretical research and case studies, qualitative research and quantitative research. Taking examples from companies at home and abroad aims to choose proper corporation value appraisal methods and improve the performance of mergers and acquisitions. Introduction clarifies the background and significance of valuation of target companies in mergering. The part of some theories introduces companies acquisitions and valuation theory, and the model and methods include:asset value-based method, market sales comparison, discounted cash flow assessment methods. The third chapter introduces the backgroud of company A's acquisition of company ABC, analysis of the beverage industry, analysis of company ABC. The forth chapter introduces ideas of company ABC of mergering target companies. This paper uses the discounted cash flow model to analyze and value that company A mergers company ABC. The fifth chapter suggests to set up the system of acquisition target enterprise value evaluation, which will play an important part in target enterprise value assessment and mergering for companies.In the end,the writer draws conclusions of the study and poits out the further research questions.