The Practice Study On Theory Of Real Options In The Enterprise Evaluation Of Merger And Acquisition

Recently years,with the gradual improvement of capital markets,listed companies arealso increasingly active in the mergers and acquisitions business.Asset evaluation,as amore important part of the process of merger and acquisition behaviors,is veryessential.Compared with the enterprise evaluation，mergers and acquisitions contain moreuncertain factors,need to differ from traditional assessment and introduce a more advancedassessment method for accurate assessment.Based on the systematical summarization of previous research and study on relevantknowledge on M&A and real options,the article results in enterprise evaluationcalculations of M&A should combine traditional discounted cash flow method with realoptions assessment methods.In the application process of the real options method,thearticle introduces Monte-Carlo model combined with B-S formula,making the results moreaccurate and rigorous.Then,the article chooses the M&A case between Chia Tai Group andChina Ping An,and calculates the value of the target company to illustrate the model can beused well.Finally,it indicates various problems that exist in the real options evaluationprocess,suggesting positive improvements and looking into the methods’ broader scope ofapplication.Therefore，from the long-term development angle，real options in the enterpriseevaluation of M&A still have the perfect space.Not only in the theoretical aspects cansupply the lack of traditional assessment methods,but also in practice field can have aviable operational and creative conclusion.