The Study For Transaction Pricing In The Acquisition Of YZC

There are two ways for the growing of companies, one is growing by themselves and the other one is growing through acquisition. In the mainland of China, corporate merger and acquisition has become a common issue with the fast growing in economic development. More and more corporations in domestic of China think corporate merger and acquisition is a strategic choice for a growing company and the cases for transnational M & A. and oversea acquisition are common. While, with the fast development for the M & A, many failed cases are shocking us at the same time and going abroad for Chinese corporations is never an easy thing.Considering the above, we could understand the process for M & A has contained tremendous risks and making decision for M & A is actually complicated, among those, the core problem is the inadequate valuation and pricing for the target company. How to get the expected return through paying the reasonable price, the author thinks it is the critical point for a successful M & A case.Combined the relative theories and case study, this thesis introduced the common valuation models and made a comparison based on the analysis of valuation theories. With a case study, the thesis showed a comprehensive process of valuation in M&A with the knowledge on economics, financial management and finance. In the process of valuation, the author used lots of information that is related with valuation and stated the application of DCF and main points, in particular, the acquisition of YZC carried out in the background of financial crisis and the third party made a competitive offer during the process, facing the serious economic environment and strong competition, the acquiring company finally made a reasonable offer and acquired the target company successfully, it is the first case for a state-owned company to acquire a listed mining company abroad.Combined the existing valuation models with the Chinese company's practices in acquiring, this thesis discussed how to choose valuation models and apply in M & A under the background of financial crisis, showed how to play games with the target company and other competitive parties and price the target company reasonably. It is expected the thesis will be helpful for the other Chinese companies to go abroad and implement M & A.