Target Enterprise Value Evaluation Index System And Methods

With the global economy's acceleration, the integrated, cross-border M&A activities have already become the protagonists. Transnational mergers and acquisitions trend indicated that in the future, the M & A activities would be operated in the context of international background. Because of different political, economic and cultural background, different countries have different corporate governance model, which lead to different impacts on the value assessment of the business objectives. In the M&A courses, the value assess of the objective company is not only the most critical problem, but also the essence of mergers and acquisitions. In a word, it is the key to M&A activity's success. What's more, it is not only the basis for the two sides to bargain, but is the foundation which judges whether enterprises' value is underestimated. The five waves of mergers and acquisitions in America and the three in China indicated that the M&A process is affected by corporate governance model. Therefore, building the goal corporate value assessment systems, not only considers its financial factors, but also associate with its management pattern. In this paper, the study of objective enterprises' value assesses index system and method is proceeding under this context.Based on enterprise value assessment and corporate governance theory and corporate governance model factors' analysis during the M & A courses, through the target enterprise value and the assessment of the status of corporate governance model, this paper systematically studys the objective assessment value index system and methods. First, on the basis of the theory of M & A and Dynamic Analysis, comparatively analyzed the influencing factors of Anglo-American, Germany and Japan model of corporate governance in the M & A process; Secondly, based on financial model and corporate governance model, built the goal corporate value assessment index system and formed the enterprise value assessment system under the affection of a target model of corporate governance factors; Finally, under the background of the acquisition of Shanghai FuXing Drug Evaluation, used AHP to construct the ChongQing corporate index system of value assessment -based on its governance model, what's more, took use of brainstorm method to determine its weights, and then, provided suitable target enterprises valuation model and implementation methodology for ChongQing drug company. This paper's characteristics and innovation lies: 1) comparatively analyzed how different governed patterns influence different goal enterprises in the M & A process; 2) Based on the financial model, constructed goal enterprise value appraisal system under the influence of governed pattern; 3) provided a set of operated implemented appraisal methods that associate goal enterprise's value pattern with government pattern for goal enterprise value appraisal.Except providing a set of operated and implemented goal enterprise value appraisal pattern and methods for the buying enterprises, this article's findings also built a set of practical feasible methods systems for how to reasonably choose the value appraisal method and reduce the risk in the following management.