Valuation Of Target Company In M&A Transactions

With the globalization of economy and the adjustment of localindustrial structure developing fast，Merger and Acquisition (M&A) hasbeen the inevitably trend of global development. It is playing a more andmore important role in adjusting the industrial structure and optimizingthe arrangement of resources. Valuating reasonably in M&A is vital tochoosing the target enterpriseand the price decision-making of it.This thesis described the theories of M&A and enterprise evaluation.It introduced three traditional evaluation methods with their advantagesand disadvantages, as well as something about options method in theM&A.This thesis compared the diffierences in M&A between enterprisesin our country and those in developed countries, and analyzed theproblems in the present enterprise evaluation In M&A of China.Westated the results by cases. To make the readers learn more clearly abouthow to use valuation mrthods and what the problems are, this thesisanalyzed the value of the enterprise in a case with revenus method andmarket method. At the end of the thesis, combined with theory overview and caseanalysis, we got some conclusions: the importance of valuation has notbeen paid attention to in our country’s situation where the securitiesbusiness and the rule of law are not so mature; it is difficult to assesscorporate value with so many methods, which all have their ownadaptabilities; the value assessment in M&A should be imprpved.