M & A Valuation And Game Study

With the acceleration of the global economic integration, enterprise merger has becomea trend in the world. Merger and acquisition (M&A), as the core of capital operation, hasbeen emerging with various forms in China in recent years. It plays an important role inpromoting current economy development and enterprise reform of our country. However,only a few cases were quit successful. Most of them couldn't reach the expectancies ofdecision-makers. The reason no doubt lies in lots of respects, among which the lag ofdecision is an important problem that can't be ignored. To achieve success in enterpriseM&A, the primary step of a decision-maker is to make decision and analyze beforehand,and the core of the decision is to assess whether M&A can create value or not. Through theresearch on valuation problems in M&A decision, this paper educes valuation formula inM&A, V=V_A+Vs+Vo. also with analysis of a game-theoretic. Besides this, this paperillustrates with some practical cases of our country and analyzes the actuality,characteristic and offers some advice about enterprise M&A valuation in our country. Thispaper aims to offer some new threads and references for decision-makers, and tries toprovide scientific instruction for domestic M&A practice, thus increases the efficiency ofM&A.Combined qualitative analysis with quantitative analysis, this paper not only uses somedomestic and international scholars' research on enterprise M&A and valuation forreferences, but also illustrates with some practical cases. In the course of research,establishing a set of value analytical methods, so that decision-makers may judgeeffectively whether M&A would create value, or make correct M&A decision.The key tasks mainly include:(1) combining domestic and international Information, itmakes detailed summarization about enterprise M&A valuation, puts forward the emphasesand difficulties, and decision-makers should make decision according to the principle ofvalue creation and principle valuation system; (2) discussing enterprise M&A valuationand estimative formula; (3) make a decision to M&A is discussed game-theoretically withrespect, giving an optimal choice.The ultimate aim is to increase enterprise value. The application of evaluation techniqueinto enterprise M&A decision reflects the value concept of modern, which plays animportant role in improving scientificity of decision, avoiding decision risk.