Application Research Of Real Options On Company Mergers And Acquisitions

The key of company mergers and acquisitions is the accuracy of the company value. The traditional method cannot take the uncertainty into consideration. Based on the real options, the essay modifies the traditional value estimating method, and divides the company value into assets value existed and the real options value. Recognizing the real options in the M&A, the paper constructs the company value model based on the real options. The last part of this thesis is empirical study. Based on the research achievements obtained, this paper recognizes the real options of the M&A in the medical industry, and intends to explore a more reasonable method of making company value in the M&A.