Research On The M&A Evaluating Of Plastal Gaoxin Automobile Accessories Co.,Ltd.

M&A has two opposite characters, as a rapid development way of the pursuit of outside growth by the companies. Attributed to the success of mergers and acquisitions, it is helpful for the enterprises to create more businesses and profits. Due to the failure of mergers and acquisitions, it results in the management of the enterprises in trouble or even in bankruptcy. The failure is caused by many kinds of reasons, but one of the most important causes is that the analysis of the target merge is not intensive in value evaluation by the acquirer and the methods of evaluation are not accurate. The value evaluation for the enterprises is a systematic and complex project, involved in the many of professional fields; therefore, the accurate valuation is the necessary factors, assuring the success of mergers and acquisitions as a premise. The scientific and accurate use of appropriate evaluation method plays a priority role in M&A, in a combination way of the quantitative and qualitativeIn the essay, the literatures related to the value assessment theory are mainly analyzed in the domestic & abroad markets, and the currently popular methods of the enterprise value appraisal are reviewed and cleaned out, which are both replied on the view of the based method of the asset value of the cost, and on the view of relative value of the market comparison and comparable transactions, p/e ratio method; and on the view of the method of cash flow and economic value added focused on the future earnings, on the view of the new method of real options. The methods mentioned above have respectively advantages and disadvantages; in this case, the essay analyzes the respectively applicable scopes and characteristics. Under the circumstance of the marketing integration, with the continuous development of economy and the optimized capital market, mergers and acquisitions both sides need to be prospective in the evaluation of the target enterprises by more scientific assessment method. Besides, this essay heavily focuses on characteristics and limitations of the basic method of the asset value when the value assessment is made for the operations of the ongoing enterprises; in addition, the suggestions for the improvement of M&A valuation are made.Through analyzing Plastal Gaoxin company merger and acquisition case background, combed the M&A purpose and the requirements of enterprise value evaluation, has been clear about the enterprise is an effective carrier of social resources. Emphasis on the important roles was in composing the synergy value that the effectiveness of the audit of off-balance-sheet assets and overall benefits composed of assets portfolio play. It is an important factor to be considered that social and environmental responsibilities have a long influence on the development of the enterprises in a healthy way, in the process of the M&A. The win-win cooperation is the oriented no matter which method of value assessment is adopted. The single method of evaluation shall lead to not only failures caused by the disadvantages of limited scope, also a deviation of the assessment, consequently, the management of acquirer should make the wrong judgment to decrease the success rate of M&A.Finally to summarize the case evaluation factors, and accordingly puts forward suggestions, in order for the future similar mergers and acquisitions in the process of enterprise value evaluation methods for reference. Whether investment or strategic M&A, a systematic due diligence should be made for the target enterprise by the merger, to research the operating, financial conditions, marketing, environment and safety, human resources and others in a scientific and detailed way, in an attempt to reach the goal of M&A, reducing the risks.