Corporate Valuation Analysis In M&As Process Of XY Merged By S

There has been a total of five times wave of mergers and acquisitions, the earliest Chinese mergers and acquisitions started from the fourth wave of mergers and acquisitions in 1984. Looking around the world, the successful road of the global enterprise is a continuously developing process of mergers and acquisitions substantially. However, mergers and acquisitions both in western countries and our country, the key lies in measuring the value of the enterprises on both sides of the M&A. At present, the commonly used evaluation methods mainly are income method, market method and cost method in M&A. These three methods have their own advantages and disadvantages and their applicability, therefore, It should have a reasonable option in practice, otherwise the value of the target enterprise can not be shown objectively and fairly.This paper first to summarize the value evaluation of relevant theory, and then take China S investment co., LTD. merger and acquisition of XY company as an example, the full use of the replacement cost method to assess the XY company and its nine subsidiaries to judge the rationality of the value of the asset. With income approach to rethink its value, the enterprise overall assets profitability was not reflected well by the evaluation, accuracy is not high. After the analysis of the causes of differences in valuation, the accuracy of the evaluation value discretion in addition to the affected by the value evaluation method, but also by other factors, the influence of factors such as administrative intervention, the judgment of the rate of fixed assets into new, the determination of the replacement cost, to assess the effect of factors such as intangible value. Finally, aiming at the problems existing in this case, the author suggest that to arrive at a reasonable and fair value of the target enterprise evaluation, it must reduce the government’s intervention on mergers and acquisitions activity; Reasonable selection of value assessment method; Professional assessment into new rate; The determination of standard replacement cost; Attaches great importance to the synergistic effect and the evaluation of intangible assets.