Research On Selecting And Pricing M&A’s Target Firms Based On The Synergistic Effects

Target firms selection and pricing is the filter behavior, which refers to two or more power main body adopt appropriate methods of selecting and pricing potential target firms under the certain criteria and established purpose. Usually, there are two ways for company to develop its business:to expand internally, or through M&A. While compared to internal expansion, M&A is more faster, but ends up unsuccessfully as over 50% failure rate, which due to select error and mispricing of target enterprises. Thus why in many cases it is necessary to study the selection and pricing of target companies.Based on the synergistic, this thesis analyses the process of target enterprises’ selection and pricing. First of all, through the analysis of synergy mechanism, this thesis establishes target enterprise synergy evaluation index system to evaluate target enterprises comprehensively and systematically; Second, applying multiphase discount method to divided and unite model to estimate the acquisition value caused by synergistic effects; Again, by analyzing the influencing factors of distribution of synergies, this thesis introduces synergistic effects sharing weight to estimates M&A’s target firms’ pricing interval; Finally, this thesis carries on case study, which uses target firms synergy evaluation index system and divided and unite model based on multiphase discount method, by employing Ding Ding Food acquisition.