M & A Valuation Based On The Core Competitiveness Of Enterprises

Since the 70' s of 20th century, there has been a booming of Merger and Acquisition (M&A) all over the world. A lot of enterprises and companies use M&A to realize management, operation to be in line with the financial effect, which brought a much greater opportunity for their development. Since the 21st centuries, M&A also has been the approach that enterprises usually choose to implement strategic reform. In 2005, the market of M&A is exceptionally active;all kinds of trades and occupations are carrying on M&A, whose market transaction scale has reached the new historical level. Compared to historic records, the amount of single successful transaction has set the new record of 4.18 billion US dollars.The western scholars have put forward various theories on M&A, but currently there is still no generally accepted systematic analysis frame about them. However, the basic view of research was the same;say the motivation of M&A and how much values will M&A bring in. Business enterprise has various motivations of M&A and mainly is due to efficient theories, information theories and the deputy cost theories, which all has the core mission to increase the enterprise' s value via M&A.How to increase the enterprise' s value via M&A? Regarding the constructing and cultivating of enterprise' s core competence as the strategic starting point;we carry on the enterprise's M&A analysis. We find that if Chinese enterprises want to capture core competence effectively by M&A, they should pay more attention to the strategy of the constructing and cultivating of enterprise's core competence, before they begin to implement M&A.And another object we want to research is enterprise' s value valuation, which is based on the process of M&A implementation. Our target is to provide the valuable valuation methods for the enterprise. By choosing proper method, the enterprises may reduce the cost of M&A.