The Study Of Growth Type Enterprise Valuation Methods In M&A

Since2008the international financial crisis, great changes have taken place in the world economy. A period of flourishing development in the financial industry experience with private equity investment, to the present because our IPO exit suffocate suffocate, let the private equity investment cooling. In any country and industry has experienced a certain industry a lot of capital, reached a certain maturity, inevitable merger, restructuring. In the process of mergers and acquisitions, restructuring, corporate valuation is a difficulty is a very key problem, if the assessment is too high or too low, the M&a failure and success is crucial.In this paper, I mainly through growth oriented enterprises and development stage of enterprise are discussed, decision analysis index and the characteristics of the emphasis on growth oriented enterprises, at the same time, research on corporate valuation done comprehensive made. In the third chapter, analysis of three factors of the main determinants of corporate value and valuation. On the three elements of a detailed analysis of the dynamics. Some difficulties of growth type enterprise valuation and the corresponding countermeasures. Finally, the two valuation methods shoud be to evaluate the growth type enterprise is:discounted cash flow method and the relative valuation method implementation steps and matters needing attention. In the fourth part, a unlisted companies in energy industry enterprise valuation is the case analysis on the basis of analysis of valuation, the difficulties and the processing steps and matters needing attention. At the end of the paper summarizes the M&a process, the growth type enterprise valuation should use what kind of method and meet the index should be how to financial indicators with the industry and competitors use reasonable, do analysis based on their future value.The fifth part of this paper, summarizes the conclusions of the study, the valuation method of growth type enterprise and the corresponding steps, growth oriented enterprises to use the discounted cash flow method and the relative valuation method. The cash flow discount method of growth type enterprise valuation mainly through four steps, first to choose valuation model to determine his business assets, secondly for operating assets valuation. The third step to achieve the conversion of the operating assets per share value. Finally, to do some revision and adjustment of some uncertainty. The relative valuation method has three steps. The first is to determine than the company mainly refers to the valuation of the company and enterprise has the similar position in the market or in the strategy, and the value is probably similar enterprises. The second is when determining the value of enterprise expansion and future earnings multiples, factors to consider than the corresponding market the company’s overall business conditions, management processes and corporate share etc.. The last is to adjust the gap between growth rates and risk. At the same time when the growth type enterprise valuation some valuation advice.The main contribution of this paper is on the valuation methods, proposed in the growth type enterprise, how to use the cash rate method and relative method to some dynamic index reasonable evaluation and utilization, as far as possible and the actual value. Hope can overcome the shortages of single evaluation method.