Research On The Market Approach Valuation Model Based On Enterprise Differences

Along with the changing of organizational structure and economic environment, mergers and acquisitions has become main instruments in China’s securities market, with optimal allocation of resources. "Twelfth Five Year Plan" also contributed to the implementation of M & A activity. M & A business valuation also attracted more and more people’s attention. From the valuation in theory, market approach is the most direct, the most practical and most easy to understand and accept the valuation method, however the market approach is not very common in our assessment. Comparable company selection problem is main obstacle and the discrepancy of enterprisesis caused it. Today enterprises have become a complex system, which in turn adds to the difficulty of implementation of market approach. We must analyse of the differences between business problems carefully, and weaken this difference.Based on the study of the theory, while mading a brief analysis of the use of domestic and foreign markets approach. I thick the market approach assess the transaction value of the enterprise. So it is better than any other assessment methods to adapt the value of merger and reorganization. Next article focuses on the detail research about the differences in corporate issues. Through theoretical studies about relationship between enterprises differences and company valuation, I found that enterprises differences be expressed as differences in corporate financial indicators and liquidity. These differences affected the business valuation in a certain extent. So the article used the fuzzy matter-element method to solve the ambiguity of financial indicators, using the discount rate to measure the liquidity difference. In comparable company’s screening, the article combined the fuzzy mathematics theory, and striked most similar comparable companies based on the formula of Hamming approach, reflecting the greater objective and scientific. In part of model, the article used the data of listed companies in the real estate industry. The reasonable results also proved that corporate variance analysis is important to market approach.In part of the practical application of the model, taking into account the acquisition of bilateral relations and mergers and acquisitions environment and other factors, the article selected Kunming Xiyuan company as a case. First, the article use the principle of fuzzy mathematics to screened five companies, and then through the ratio multiplier model to calculate the value of the Target Company, and finally the correction of non-current differences. Through analysis of the results of the case, the relevant data show that the corporate value closed to the actual value of the transaction, so the practical application of this model is ideal.This paper studies the differences enterprises to establish a new market approach valuation model, and improved the traditional market approach and the single multiplier ratio index system. Including the creation of the index system of eigenvalues, the new method of selecting comparable companies, and improvement of the adjustment process on the target company and comparable companies. The practical application part enhanced market approach valuation model application, enriching the market approach method.