Valuation Of M&A Target Company Based On EVA

M&A is always the popular topic both in theoretical and practical circles. M&A has become the key for enterprise to arrange their resources, expand their market. In this essay, the author makes a comparative study of popular theories on M&A valuation and the M&A valuation model based on EVA. After Detailed analysis of it, the author point out that all the traditional methods are unable to get the M&A value without considering the economic profit concept. So the traditional enterprise evaluation methods are not able to lead to a right decision. Base on the EVA concept, the author intend to combine the synergy concept an EVA evaluation model. Finally, the author analysis the M&A case of Anshan Steel&Iron and Ling steel in detail, with the aim to provide a new enterprise valuation method to corporate.The purpose of this article is to study the value of corporate in M&A based on the EVA valuation methods. The article combining the method of normative research and case analysis with the use of the method of normative research to study the current research at china and abroad of EVA, basic concept and the calculation of enterprise EVA, EVA enterprise valuation model, process of EVA enterprise evaluation method. Then, use the EVA enterprise valuation model and the process of it to analyze the Ling steel company’s value. With the use of EVA valuation model, CAPM and regression analysis using Excel in this case analysis to make a good qualitative analysis. Finally, this article study the application situation, reason of EVA enterprise valuation method in China based on the above analysis. This article is the further improvement of the popular of enterprise valuation-EVA enterprise valuation method with combining the enterprise valuation and enterprise’s real value. This is not only good for investors to make right investment decision using it, which can make the management of enterprise have a good method, but also promote enterprise M&A valuation to convert to good method which put the development of the M&A in china.