Research On The Evaluation Of Goodwill Of XE Company In The Case Of Enterprise Merger

With the increasing competition among enterprises, goodwill plays a more and more important role in enterprises. At the same time, the domestic and international market mergers and acquisitions between enterprises more and more events.Therefore, it is necessary to make a reasonable assessment of goodwill value,especially in the case of mergers and acquisitions,the evaluate the of goodwill is more important.In China,the asset evaluation industry appears late, the development process is also more tortuous,goodwill value evaluation is very difficult, so the theoretical research is not mature.To carry out research on goodwill evaluation can help to improve the assessment staff occupation level, help the activity of property right transaction to go on smoothly,encourage enterprises to pay attention to and improve their management level. Therefore,the demands of the actual situation determine the exploring of goodwill value evaluation methods has a high research significance.The value of goodwill is not directly related to the cost of its formation, which is mainly affected by many factors, such as technical level, external environment, social influence, management and so on.The influence factors for goodwill are complex, it is difficult to decompose,so the possibility of using the cost method to assess goodwill is very small.Because each enterprise’s goodwill is particular,it is difficult to compare with other enterprises, so it is not appropriate to use the market method to evaluate the goodwill value.At present, the main method of goodwill value evaluation is the income method,the income method can be divided into two types,one is the cutting method, the other is the cumulative abnormal return method.The value of goodwill is mainly decided by the ecxess earnings,therefore, it is scientific and reasonable to use the income approach to evaluate the goodwill value.However, the income method can not analyze the factors of goodwill, and the result is also not accurate enough.Based on this,this paper introduces the analytic hierarchy process (AHP) to improve the traditional income method, which makes the evaluation result more scientific and accurate.Firstly,this paper discuss the necessity of the research on the value of goodwill before introduce the basic principles and methods of the analytic hierarchy process(AHP).After that, aiming at the defects of the traditional income method, this paper introduces the analytic hierarchy process (AHP) to improve the traditional income method, and introduces the method and applicability of the analytic hierarchy process(AHP) in the evaluation of goodwill value.Then, this paper takes XE company as an example, describe the process of the evaluation of the goodwill by the traditional income method.This assessment is done by the authoritative evaluation organization.Finally, the analytic hierarchy process is used to analyze the value of the object to be evaluated, and the improved evaluation value is calculated,and then,reach the conclusion.