The Analysis Of Real Option In Valuation Of Company Mergers And Acquisitions

During more than 30 years of reform and opening-up, the economy and capital market of China has achieved great development, the development of the company is no longer limited to the endogenous growth, more and more companies especially for the listed companies, achieve industry consolidation, business transformation, the strategy of diversifying purpose such as involved in the merger and acquisition activity. It is expected that the scale of the mergers and acquisitions of listed companies will break through 1 trillion RMB in 2014. The success for M&A is depended on the acquisition target valuation, traditional enterprise valuation is based on the underlying future cash flow discount method is adopted to improve the value of the assessment, this way of valuation in the future there is a big uncertainty has certain limitations. Introducing financial option, the way of thinking of physical the valuation of real options, which is more accurate to estimate the uncertainty. That is a beneficial attempt, especially under the current economic development stage. This paper will respectively in this paper, the traditional physical valuation method, and the real option valuation method, and the related case analysis real options valuation in mergers and acquisitions of listed companies in our country, and for the future mergers and acquisitions of listed companies in China in valuations offer certain reference significance.