Evaluation Of High-tech Enterprises Based On The Life Cycle Theory

Since the21st century, the advent of economic globalization and the knowledgeeconomy era, making science and technology and high-tech talents become a modernenterprise to survive in the big economic environment even essential magic weapon forwinning Today, the rapid development of high-tech industries in the world, economicgrowth depends largely on the development of science and technology, only to do afundamental technological innovation in order to promote the overall economicdevelopment. Meanwhile, China has also ushered in the era of rapid development ofhigh-tech industries, frequent high-tech enterprise market, mergers and acquisitions,restructuring, and the rapid development of high-tech companies, venture capital forhigh-tech enterprises which are having an increasing valuation needs and methods forassessing a higher and more accurate theory and practice requirements. However, theemerging of new technologies, new industries, making the update rate of knowledge inthe acceleration mode of growth, high-tech enterprises gradually shortened productlife cycles, coupled with the uncertainty of the external environment, so that high-techenterprises and traditional enterprises in the growth mode and the development offeatures, which are very different, and therefore past traditional business valuationmethod is not applicable to assess the value of high-tech enterprises.In this paper, based on the traditional theory of enterprise value evaluationmethods, through the systematic analysis of business life cycle characteristics ofhigh-tech enterprises at different, drawing on the theories and methods of foreignhigh-tech enterprise value evaluation, combined with the development of status ofChina’s high-tech enterprises, established value evaluation methods for different stagesof the business life cycle. The author used literature, mathematical models, caseanalysis method to provide advice in the choice of high-tech enterprises in differentstages of the life cycle of business valuation methods, and to illustrate the applicationof different evaluation methods through case for the theory and practice of business valuation community to provide reference.Paper consists of five chapters: Chapter I is introduction, mainly introduces theresearch background, objectives, significance and methods, and lists the existingdomestic and international literature research findings and perspectives, and itscorresponding commentary; Chapter II, based on the classical theory of enterprisevalue evaluation, introduced traditional enterprise value evaluation methods, mainlyinclude the income present value method, the relative value method, real optionsmethod and the replacement cost method, and the application of these methods tocarry on the summary; Chapter III introduces the range of high-tech enterprises andtheir characteristics identified, followed them at different stages of the life cycle ofbusiness enterprise features for further analysis and conclusions on the basis of thesecond chapter, the final choice of the suitable for different life cycle stage high-techenterprise valuation methods; Chapter IV,take HUAWEI INVESTMENT&HOLDING for example, through the judgment of the case in which the company lifecycle stages, to select the appropriate valuation method to calculate its enterprisevalue, in order to verify evaluation methods can be applied; Chapter V,in the studyon the basis of all the previous chapters of the thesis are summarized, and pointed outthe lack of research in this paper research,also prospects and beyond.The innovation of the paper lies in: The majority of previous studies to assess thevalue of high-tech enterprise approach is based on the study of a single life cyclestages or corrected and applied research on an evaluation methodology, the analysis ofthe corporate life cycle has less theoretical perspective. This article based on thelife-cycle theory of enterprises, high-tech enterprise value of each life cycle stage to doa comprehensive evaluation systematic analysis aimed choose valuation methods atdifferent stages of the life cycle of high-tech enterprises to propose effectiverecommendations.