M & A Valuation Of The Target Company

Since the 70's of 20th century,there has been a booming of Merger and Acquisition. Many enterprises and companies wanted to do better in management by M&A,which brought a much greater opportunity for their development. In China since the 90's of 20th centuries,M&A also has been the approach that enterprise usually chooses to implement strategic reform.It is very important in merger & acquisition to value the company correctly,which can make the price of M&A.The valuation of target enterprise is the main content in the paper. Using FCFE(Free Cash Flow to Equity ) to value target enterprise in reality is the key part in the paper. There are five chapters in the paper.The first is the foreword. In the foreword mainly introduce the paper research goal, the research related literature, the research structure, the research technique tool.In the second chapter,the main content is about M&A the theory and the valuation theory.In the third chapter,reach and analyze the related valuation method. There are many kinds of valuation method to use on target enterprise. But each method has its advantage and disadvantage. Therefore we only can apply a kind of method,which is fit for the target enterprise's specific circumstance and then valuate it with scientific way. There are four kinds of method to introduce: FCF method,Market Valuation method,Cost Valuation method,and Option Pricing method.The fourth chapter is the part of the demonstration. Valuate some listed company by FCFE model in this chapter. This article selects the case that is about the M&A between SVT Group and Little Swan...