Research On The Value Evaluation To Target Enterprise In M&A

As M&A in China’s capital market has become active with each passing day, how to improve the effectiveness of mergers and acquisitions become increasingly concerned topic. There are many factors which impact the M&A activities. This paper is mainly to analyze a specific branch of value evaluation. At present, the valuation and pricing has become the core which are widely accepted of the mergers and acquisitions. Using reasonable assumptions and scientific valuation method can offer a feasible and objective basis for the pricing of M&A transactions. And that also help to avoid unnecessary risks which rise from lacking objective understanding of the target company to the acquirer.The purpose of this study is to analyze and to sort out something about the important effects and influencing factors as well as specific assessment methods of the value evaluation in M&A.I expect to provide some possible suggestions and helps for the practice. This article draws lessons from the domestic and foreign scholars in the enterprise merger and acquisition and assessment of the value of research results. In addition, It also combines with practical valuation for M&A cases and detailed statistical data analysis. The method called combination of Qualitative and quantitative analysis.This article is divided into five parts. The first part is the introduction and Introduces the domestic and foreign enterprise value appraisal theory achievement. The second part is a theoretical basis which introduces merger and acquisition value assessment theory and clarifies the value assessment in M&A. The third part mainly discuss the value assessment of enterprises in practice as some issues of concern, including the valuation process and its impact factors. The fourth part focuses on the value assessment of three kinds of methods: the cost approach, income approach, market approach, and discuss their applicability and limitations through case study and data analysis of the application, and has carried on the summary. The fifth part summarizes the conclusion and some existing problems. And the article further puts forward some suggestions to improve the practice of China’s M&A valuation of the target company.