The Pricing Of Cross-Border M&A Targrt Company

With the increasingly economic globalization, as the cells of the market, companies are also actively involved to this economic globalization tide, in order to achieve inter-regional cross-country growth, many powerful enterprises have chosen the way of the cross-border mergers and acquisitions. But corporate cross-border mergers and acquisitions is not smooth sailing, because it require a lot of factors to get ultimate success, such as the choice of the target company, the pricing of the target company, the final price formation to the enterprise integration after M&A and the integration management, at the same time, these stages constitutes the process of the corporate cross-border M&A. Pricing for the target company is the core link of the mergers and acquisitions throughout the process, If reasonably priced, you can make the master enterprise to get acquisition premium, otherwise, the master enterprise may fulfill the cost of overweight and affect the capital operation. Therefore, the article mainly from the angle of the master enterprise to research on the pricing of target companies in the cross-border M&A. The research including the contents of the following: a overview and Summary of the theory about the Cross-border M&A, the choice about the methods of the company valuation assessment, analysis of the two sides of the M&A and the determination of the value matching.This article introduces the cash flow method as the method of target company valuation assessment, then analysis the values of the parameters in the model and the advantages and disadvantages of the model. Also the article analysis and the establishment of matching evaluation matrix from four dimensions, corporate strategy, resources, organization and operations for both sides of the M&A, in order to calculation the weighted evaluation of the calculated values and the matching coefficient, to measure the match degree of both side companies. Finally, the article establish the model of the intrinsic value about the target company and the pricing of value matching.