Pricing Of Foreign Mergers And Acquisitions

Along with the deepening of China's reform and opening, foreign mergers and acquisitions will greet a big development period. In the recent years, the practice of acquisition by foreign investors shows that the foreign mergers pay more attention to those companies in the industry-leading position, good economic returns, and a greater impact on the industry sectors leading enterprises in order to occupy the market, control over the resources, and suppress competitors or other foreign targets.Enterprise value evaluation as part of the core deal, not only relates to the success or failure of transactions, but also relates to the Chinese shareholders' equity and the protection of state-owned assets. Therefore, its importance is self-evident. Currently, more mature enterprise value assessment methods, such as the asset method, market method and revenue method, are tended to the financial point of view to measure the value of the business, there is a big limitation in this way. That's because this will lead to the damage of Chinese shareholders' equity or the losses of state assets in many cases. Therefore, a reasonable evaluation of the value of the M & A business is of great realistic significance.This paper starts with the enterprise value of the theory and the method of evaluation, analyzes the advantage and disadvantage of the existing assessment methods specifically in order to build an enterprise value assessment system which is more suitable for China's national conditions.The main innovative point of this paper is that this paper puts the value evaluation of the enterprise M & A research into a systematic analytical framework, renews the concept of corporate strategy value, and illustrates that the value of mergers and acquisitions should include three parts: the true value of the assets, strategic value and synergies premium. The assessment value of M & A is actually a three-part value assessment. On this basis, the paper constructs a model to assess the value of enterprises. And the paper designs financial and non-financial indicators of the index system to assess the value of corporate mergers and acquisitions reasonably. In the end of this paper, the paper raises some problems that need paying attention to according to some problems in the part of foreign capital merging the enterprise value.