The Evaluation On The Merger And Acquisition:Case Study On The Company AP Purchasing G

Recent years, with China’s rapid economic development, the continuousimprovement of the combined capital markets, asset restructuring, corporate mergersand acquisitions and other activities have become more frequent, the face of China’sincreasingly active corporate M&A market, how to be able to accurately andreasonable determination of the target enterprise pricing become the key factors thataffect the success or failure of the entire M&A activities. This article provides anoverview of the theory of domestic mergers and acquisitions, and the target enterprisevaluation analysis of the significance of mergers and acquisitions, M&A targetenterprise value assessment method and content.The research of this paper is through a real case of company A purchasecompany G, using investigation method combined with related theory, to explore thetrain of thought, method and procedure of the multinational enterprise during themerger activity on the target domestic private enterprise. Firstly the paper introducesthe background of the topic, reviews the corporate value assessment conception andtheory, and briefly introduces some basic method of corporate value assessment.Secondly, introduces the background of the merger case, including macro economicsituation, the industry background and characteristics, the competition information aswell as basic information of both enterprise company A and target enterprise G.Thirdly, base on the related theory, this paper does the analysis on the reasonsof company A’s merger and acquisition activity, and dose qualitative and quantitativeanalysis on the factors to influence enterprise value. And then, basing on thequantitative analysis of the factors which have impacts on the cash flows analyzes indetail on the business income determination. Through calculation and analysis, theauthor finally forecast the fair value and acquisitions price limit of G company. At last,the author put forward some practical advice about value evaluation on privateenterprise through contrasting and validating the actual operation data after themerger with the forecast data.