A Research On Financial Value Estimation Problem In Enterprise Merger And Acquisition Reorganization

The enterprise merger and acquisition is the name combining annexes (Merger) and purchases (Acquisition). Here are three patterns for the enterprise merger and acquisition, namely, the crosswise merger and acquisition, the longitudinal merger and acquisition, the mix merger and acquisition. The causes of the merger and acquisition reorganization are expanding enterprise economical scale, enhancing the enterprise market share, the enhancement competition strength, coordination effect, the multiple-angle management-enterprise development, financial coordination, congenial merger and acquisition being gained by merger and acquisition enterprise property; shell-buying going on the market, the government impelment. The payment forms of the enterprise merger and acquisition reorganization are the specie payment, the stock payment, the debt payment, the mix payment way, the country freely transfers, the release lever type purchase. The risks include system risks and strategic risk, financial risk, counter-purchase risk, management risk, conformity risk and so on law and policy risk, market risk, system risk, political risk and so on non-system risk.Enterprise’s intrinsic value is the rational foundation of making decisions for any merger and acquisition reorganization. No matter how it works and what the purpose is, the merger and acquisition activity final decision all displays in the price. All the analyses and the researchs are to answer a simple question:the price for bidding and the price for accepting. Simple introduction of target enterprise’s financial characteristic, target enterprise’s financial analysis and target enterprise’s three financial estimate value method, namely, cost method, discount cash current capacity method and market comparison method.To solve the value problem of provincial CTT brach company is the key for gathering CTT and China Mobile strategically. After solving the problem of value estimation, CTT uses the strategy of going on the market as a whole to purchase the branch company’s assets, and to perfect the property right foundation on both sides. However, speaking of CTT, it will have the widespread value by getting rid of the present unsatisfied product, having the overweighted debt burden, promoting customer sensation, reducing the investment scale, and improving the efficiency and the profit. This paper analyzes the three kinds of value estimation methods and obtains the value for Liaoning subsidiary company. It also points out the necessity and the opportunity for China mobile to merge CTT although the cost method is not advanced but in line with the interoperability with China’s national conditions.