Mergers And Acquisitions In The Method Of Valuation Of The Target Company Selection And Application

As the Enterprise's out-exchange statistic popular operating method and the capital operating core measure, Merger and Acquisition (M&A) has become the tide and the guidance for enterprise's development with the market economic system steeply perfecting, the nation enterprise reforming deeply, the modern enterprise system founding and perfecting. In the future,M&A will continuous happen between our enterprises.During the course of M&A, the evaluation of the objective unit is one of the key problem, which is the trading marrow and the key factor to success and failure of M&A.In introduction part, it expounds the sense of researching the valuable evaluation on Merger and Acquisition, analyses the several existing problems at present in our nation and brings up the research way of thinking. At the same time it points out that we should select the correct valuation method fitting for the particular Merger and Acquisition actively to arrive our aim of Clear with science towards target business enterprise value, since the method towards target business enterprise value takes the gauge of category many and it has its science rationality, also there is blemish and luck.Firstly, introduces some theory and Knowledge about Merger and Acquisition, Then It expounds and analyzes the researching status quo of the enterprise's valuation of the world, especially on the discount cash flow valuation.. Among them it detailed analyses how to determine the discount rate, the increase rate and the cash flow, and it brings forward a new way on accounting the increase rate. Promoting some valuation model fitting for different enterprise and different asset for the especially case of M&A ,and it expounds how to use the cash flow discount to value the enterprise been placed in the circumstance of Periodic company Operating the company in the difficulty. It accounts the synergy effect value by using the change of the case flow and the development of the company and the target company, and then it distributes the synergy effect value to the company and the target company. Lastly I checked it through a actual case which is used the discount cash flow valuation,and I compared the result calculated in the discount cash flow and the book value way, then analyzed the reason.