Real Options In Corporate Mergers And Acquisitions Valuation Model Of Applied Research

Mergers and acquisitions as a way of resource integration and optimize configuration, has been more and more applied to the strategic decision of an enterprise, so these lead to the frequently occur of mergers and acquisitions. And the quantity and amount of the mergers and acquisitions present the tendency of rapid growth. Therefore, the enterprise M&A attracts the widespread attention of social from all walks, and the study of M&A is also growing. How to evaluate the target enterprise is a key link in the process of mergers and acquisitions, and this may even relate to the results of mergers and acquisitions whether success or not, so how to assess the value of the target enterprise correctly and reasonably is particularly important.There already have many kinds of evaluation methods of an enterprise domestic and overseas, including the traditional evaluation methods and the method which use the real option model. The theory and practice of traditional methods of valuation have been relatively mature, but they all inevitably have their defects. Thus these flaws may lead to deviation in the calculation results, especially the traditional evaluation methods can not evaluate the value brought by the uncertainty in the process of M&A, and these eventually could lead to a wrong decision. Based on what is said above, these paved the way for the introduction of the real option model in M&A valuation. The value assessment method which introduce the model of real option, is not completely the negative of the traditional valuation methods, but is the result of the modification and improvement on the basis of the scientific connotation of the traditional evaluation methods, and the purpose is to better assess the value of the target enterprise.In this paper, it mainly adopts the method of case analysis, and uses the mergers and acquisitions in the resource-based industry as an sample for research. Based on the characteristics of the resource-based enterprises, the model of the real option value evaluation is applied to such industry. Because this model can assess the value of real option implied in the enterprise merger and acquisition of this industry, this can help the managers make the right decision. At the same time, this can provide as an example of feasibility study on the real option model used in such industry M&A value assessment. I hope that this paper can provide a reference for the mergers and acquisitions of the resource-based enterprises and making the scientific decision of M&A, thus to promote the smooth progress of the mergers and acquisitions.