Research On The Evaluation Of The Target Enterprise Value In Cross-border M & A Via Balanced-Scorecard And AHP

Cross-border M&A has become the important way to expand market share and break through trade barriers, which in turn to strengthen core competence of the enterprise under the background of economic integration. In the M&A negotiation, the selling price of the target enterprise is one of the core problems. Reasonable strike price contribute to the success of mergers and acquisitions. Therefore, the way how to evaluate value of the target enterprise is an important factor, which is the topic basic of this paper.On the basis of the relevant theoretical research, firstly we analyze the development process and current situation of M&A market in our country, in order to summarize the motivations of merger strategy, which is proved diversified with high risk and market uncertainty. Then according to the theory of balanced scorecard, we analyze the value factors of target enterprise in cross-border M&A and build the index system. Considering the deficiency of traditional methods in the evaluation of enterprise value, we put up the correction evaluation model in combination with the value factors with the method of AHP. The result we get from the correction model is the overall value including discount or premium caused by motivations of cross-border M&A. Last, we select the N.L. Company as an example of cross-border M&A for case analysis.This paper is aimed at improving accuracy and scientific of the evaluation of the target enterprise value in cross-border M&A, to provide effective price basis for the M&A negotiation, which is of great practical significance to reduce the risk and improve the success rate of M&A for our local companies.