Research On Target Enterprise Value Evaluation Based On DCF Model In M ​​& A

In recent years, as China’s rapid economic development and continuous improvement of capital markets, mergers and acquisitions, asset restructuring and other activities become increasingly active. China is now the face of an active M & A market, how can reasonably and accurately target enterprise pricing, the key issues affecting the M & A activity. Taking frequent among corporate restructuring activities in China in recent years as the background, from the theoretical and practical point of view combined cases, the use of scientific and reasonable way to assess the value of the target company, objective and fair assessment of the results obtained, the purpose is for real M & A activity in the M & A decision-makers to provide some new ideas and reference guide scientific direction of mergers and acquisitions to enhance the success rate of mergers and acquisitions of domestic enterprises.Firstly, domestic and international mergers and acquisitions, and valuation of the target company’s relevant theory of simple exposition, and analyzes the importance of the valuation of target companies for M & A activity; secondly, taking into account the different motives merger will eventually produce different mergers and acquisitions value and achieve different synergies, while this paper, M & A activity in the mergers and acquisitions practice specific motive classified summary, and on management, finance, business segment analysis of the practice of the three M & A activity in synergy; Finally, the M & A contents of the target enterprise value assessment methods, and analyzes the applicability of different assessment methods and the use case details the discounted cash flow valuation model for the target company, and concludes with recommendations for further improvement of China’s M & A valuation of the target company.The innovation of this study is that the theoretical level, the use of discounted cash flow model to assess the value of the target company, and to determine the rate of return on equity capital of the capital asset pricing model theory research, reference Fama-French research ideas, develop and enrich the theory of capital asset pricing model; the practical level, the choice of D M & L enterprises as a case study from the actual case to verify the scientific level and effectiveness of discounted cash flow model, and take full account of the target companies for the portfolio all excess returns have produced unique risks for both sides acquisitions provide more scientific and accurate transaction price basis, and enhance corporate decision-making ability, and improving decision-making scientific, corporate decision-making to prevent the risk of great value.