Analysis For Impact On The Value Of The Corp.S Merge And Accquitsion Across Industry

More and more multinational enterprises change their businessfrom the original industry to new industry. The free cash flow andthe value of enterprise have two key driving factors: the growthrate of revenue and the return of invested capital. Thecharacteristics and development potential of the industry areimportant reasons which have great impact on the growth ofenterprise if no consideration of the strategy and business ofenterprise itself. If the industry potential can t meet the needof the enterprise development, it is essential to develop businessacross the industry, and the merge and acquisition is the bestoption for the enterprise.My essay mainly tells about the reason, process and result ofthe M&A across industry. Firstly, I will introduce the background,and analyze the business through the analysis of industry financial statement and stock market. Secondly, delicatelydiscussing the strategy of merge and acquisition includes the option of new industry, analysis for the potential development inthe new industry, the synergies after the merge and acquisition,the fuse of different culture and strategy between the differententerprises. Finally, I will use the valuation model to estimatethe value of enterprise after the merge and acquisition for thereference.The meanings of the essay are in below,1. The cases are less which is analyzed through revenue growthand return of invented capital for the impact on the enterprisevalue from the consideration of merge and acquisition acrossindustry. The case will cover that from the dilemma the Corp Sfacing to the finally consolidation of merge and acquisition, andwith the use of discounted cash flow model to get value of Corp.S after merge and acquisition. That will provide a detaileddescription of the value impact for the merge and acquisitionacross industry.2. More and more enterprises in China are facing the problemhow to be stronger and bigger, and also will need to know theresolution in their development. The case will give them some references for their promoting their enterprise value for mergeand acquisition across the industry.