M & A Valuation Of The Target Company Preferred Model

M&A is a strategic tool or investment behavior to enterprises, and it acts as research in strategic management as well as strategic alliance. It is that enterprises enter wider business scope and market field to M&A. Manager can mainly adjusts and shares resources of two enterprises through M&A in order to obtain the cooperative effects which are from resources, culture and strategy, namely obtain the result of"1+1>2". With the sharply competition in international market, the enterprises in China choose M&A to expand and enter the international market. In view of the cases about M&A in China and oversea, however, the successful enterprises in M&A are not more than 15% of these. The reasons of leading to failure in M&A are no good integration, especially in culture, to lost customers, to lost key staffs, so efficient integration must be considered before to choose the target enterprises, then manager need to evaluate the target enterprises, to help to choose the target enterprises at the beginning of M&A, and not lead to hard in the integration and decrease of value for not selecting the target enterprises.My article gives good choice of the target enterprises through analyzing internal and external elements of the target enterprises and the cooperative effects, for preparing for M&A. When the target enterprise has been chosen, it will be evaluated. To two kinds of M&A of different nature, setting up corresponding value assessment model separately. For one thing, it will make and offer reference for the payment price in M&A, for another, it will observe the possible value appreciation factor of the target enterprise and difficulty in integration. Two assessment models differ from M&A for finance and M&A for strategy with certain...