Listed Company Merger And Reorganization On Revenue Valuation Method Enterprises

Nowadays, with China’s rapid economic development, corporate merger andreorganization has become more active. The quantity and amount of merger andreorganization in china’s market reached another high point in2013. The listed companiesare the most active parts in merger and reorganization activities. As a major reference oftarget company’s value, business valuation plays an important role in merger andreorganization action and has a great influence on the success of merger andreorganization.As one of the three main appraisal methods, income approach values the targetcompany from the revenue perspective and the listed companies are also attracted by thepotential revenue of target company. The income approach is theoretically the optimumapproach to value the target company in merger and reorganization. With the rapiddevelopment of merger and reorganization activities, the current situation in the choice andusing of income approach is worth to be analyzed. These analyses are meaningful to bothmerger and reorganization corporate valuation’s theory and practice.This thesis analyzed the choice and using of income approach based on the143mergers and reorganization transactions of listed company in2013and examined theCAPM methods with the domestic listed companies’ statistics. Based on these statisticsand empirical analyses, this thesis points out the problems and puts forward someproposals, such as extending the year for specific prediction, guiding the adjustment ofspecial risk. I really hope this thesis can provide some new ideas and information toimprove the selection and using of income approach in merger and reorganization of listedcompany and provide useful information for further relevant study.