A Study On The Merger And Acquisition Of Enterprises Based On Real Option Theory

With the quick development of economic globalization,corporate restructuring and listing,asset restructuring and mergers and acquisitions activities increasingly prosperous.Corporate financial management objectives have changed towards to maximize the value of the enterprise.In this context,the significance of value evaluation has become increasingly prominent.As an important means to achieve complementary advantages and effective integration of resources,M & A is a shortcut which helps rapidly to complete the scale of expansion and their own growth.However,M & A is a complex economic behavior involving many problems and relationships.Among them,M & A pricing is the most interesting and sensitive issue for participants.Only when the pricing is reasonable,can it meet the transaction requirements of both parties.As the basis of M & A pricing,target enterprise value evaluation is the primary problem which M & A both sides need to solve.This paper expounds the contents,nature and advantages and disadvantages of the three traditional methods.Although the traditional assessment methods have been used frequently,some of their shortcomings affect the rationality of the assessment results.Now more and more scholars and companies began to pay attention to the real options law which can make up for this defect.On the basis of the comparative analysis of the traditional theories and methods of enterprise value evaluation,in the first place,this paper recognizes the important position of cash flow discounting method in enterprise value evaluation.However,in order to solve the cash flow uncertainty existing in the process of business operation,the traditional cash flow discount model is improved by using the binary tree option pricing model under the real option method as the starting point.Secondly,the improved model method is combined with the actual model,and applied to the enterprise value evaluation example of Sander Environmental Resources Co.,Ltd.Finally,this paper also considers the value of abandoning the option in the process of business operation.Through the calculation,the result is more reasonable.The conclusion draw in this paper is that the valuation method adopted in this paper is not only more reasonable than the market method which is directly based on the stock price valuation,but closer to the actual value of Sander Environmental Resources Co.,Ltd.