Major Asset Restructuring Of Listed Companies In The Enterprise Application Of The Income Approach Valuation

The Fifth merger wave began from the1990s, and China’s enterprises take partinto the fifth wave of mergers and become a hot spot of the wave of mergers. Evaluationof the target enterprise is the key of merger. In the course of development of assetsvaluation, the appraisal theory is behind the appraisal practice. Most of the enterprisesuse cost method in practice, and then verified by the income method. From a theoreticalpoint of view, the income method is accurate and scientific. But the income methodinvolves a large number of parameter in the assessment process. Based on this, this paperanalyzes income method of the process when A restructured B and researches the choiceof appraisal method of business valuation. And this paper focuses on the advantage,disadvantage and the points for attention when enterprises use the income approach topromote the income approach theory and its practice.