China Power Investment Corporation Acquisition Of Yancheng, Thermo Electron Corporation Valuation Study

The merger between enterprises, also called reorganization, is an important means of modern company which is to extend outwardly , to constrain its business and to implement its reforms .Corporate merger means that one company holds a certain amount of shares to gain control of another's business,thus, two companies have been mergerd. In other words, under the control of purchaser, the two parties achieves an intergration of strategyproduct,sale and financial affairs. In our country, due to the charactistics of the state owned enterprisers' reforms, reorganization is becoming one of the most common ways.With deeping of the process of reform ,since 2005,Our corporate merger is still making progress and a great deal of innovations appear one after another .In recent years ,conforming to the government polices, a lot of central enterprises implement the reorganization actively .They combined their own development and revolved around their main industry, especially in electric power industry. In order to expand their production scale and raise their economic efficiency, Chinese five power investment groups play an important role in purchasing local ones. a good case in point is that China Power Investment Corporation reorganized Yancheng Heat and Power Company.In the process of corporate merger, the focus has been on how to assess the value of the merger .This paper centers on the assessment of corporate merger and is on the basis of features of merger in electric industry. Adpoting the qualitative and the qualitative analysis. The author takes an example of which China Power Investment Corporation reorganized Yancheng Heat and Power Company .As capared with all other kinds of assessing methods, the cash flow has been decided. The author puts forward ideas that the pattern of share cash flow is a valid method of assessment in the process of corporate merger.