The Research Of The Infant Child Company Valuation

The pregnancy and baby industry has entered a rapid development period in China, which is a sharp contract to the stagnant traditional retail industry. All the major international brands and domestic entrepreneurs have intention to enter this market to seize the chance of future growth. Mergers and acquisitions are very active in this industry in the past few years. In M&A transactions, it is very important to assess the value of the transaction object. And the valuation of the non-listing company is belong to the primary capital markets where lacks of liquidity and transparent deal information. And both transaction parties have asymmetric information and different expectation to the markets, which is one of the greatest sources of risk, comes from valuation risk. So the process and the assumption used in the valuation is the main focus for both transaction parties.M company is a retail company specialized in pregnancy and baby industry in China. Now it has many retail stores and also has online e-commence business. Now the international retail giants’ intent to investment in M company and now in the stage of negotiate the transaction price.This article will perform the financial analysis on the historical financial data and give the financial forecast base on that, and choose the appropriate valuation method to evaluate the shareholder value. And finally this article will give the investment advice and also give the reference for management negotiation on the final transaction price, and the characteristic and methods for the valuation of retail company.