Improvement In Corporate Mergers And Acquisitions For The Purpose Of Market Valuation Method

In the continuous development of market economy, the market is continually improving. Thus, the role of asset valuation in economic life is becoming increasingly important, particularly in business valuation. Company financial decisions occur, the equity transfer, business valuation need to be when the economic behavior of mergers and acquisitions and restructuring and listing. Business Valuation studies were initially some developed countries in Europe and America, they are most commonly used method is the market law, but our evaluators contrast, they are most frequently used method is the cost method and income method, market method is rarely used. Therefore, the market valuation method in the application of Chinese enterprises seldom. In recent years, China’s capital market continues to improve, mergers and acquisitions transactions more and more active, and more related to cross-border mergers and acquisitions, market conditions for the application of law is gradually being met. Thus, the application of the market approach will also be more extensive.Herein in connection with a specific case study application market valuation method in the enterprise, and improve the traditional market approach, market approach makes use of more scientific and objective. Market approach in the application process for the two major difficulties:First, the selection of comparable companies subjectivity. Single enterprise value of different assets, each company has its own characteristics, to find two identical enterprises in practice is not possible. Therefore, the choice of how enterprise applications comparable choice of methods comparable enterprises and eliminate subjective factors and how to adjust the difference between enterprises is comparable method using market valuation of enterprises is a major problem; Second, the value of the multiplier is not reasonable choice. Different business value drivers vary, how to select and identify the core value drivers is not easy in the many factors. To evaluate the results of the market law is more persuasive, these two aspects need to be improved.In terms of comparable companies choose paper will use fuzzy math the close similarity of the principles of comparable companies to sort, filter and empowerment so that screened out companies with comparable. In the value of the multiplier selection, commonly used multiplier value generally can not fully reflect the characteristics of the hair and thus not fully reflected the value of the business drivers, make the evaluation result deviation. This article will expand on conventional multiplier on the basis of value in order to more accurately reflect the value of the business drivers. Thus, through the market approach in comparable companies selected both choice and value multiplier applications market will improve in business valuation method is more scientific and objective.