| Since the enormous progress of science and technology in latter half of 19 th century,social productive forces got a huge development.Industry like metallurgy,petrifaction and machinery started large-scale mergers and acquisitions,the wave of M&A dominated by horizontal M&A then rose in countries as America and Germany and formed large-scale monopoly enterprises.After the first wave of M&A,western developed countries successively rose five waves of M&A during the 20 th century,Chinese M&A market also got a big progress with the affect of the wave in 1990 s.During the fifth wave of M&A in 1990 s,under the circumstance of economic globalization and integration,cross-border mergers and acquisitions has gradually grow into the main measure in FDI.As an up-rising star of economic development,with the stagnate and descend trends of the economic growth of developed countries in 21 st century,China has become the main force of cross-border M&A.Modern times M&A is an important method in business expansion.Between the methods of the expansion and conformity of enterprise,M&A has its unique advantages.It’s a shortcut of the enterprise development,through this way,the enterprise could get all the economic resources of the target,including all kinds of property and human technological and finance resources.The enterprise can make a full and proper use of the resources according to its requirement and strategy,so it get a preferable performance in a short time.Besides,M&A could help an enterprise enter a new territory rapidly without industry barrier.In this special revolution time of M&A market,since the expansion requirement and the object company’s choke point to make it a perfect time to execute this merger plan,Leyard in this case,choose to perform a transnational M&A.This is a bold attempt since Chinese M&A market is not mature enough to guide this case.,so the pioneer is very representative and has its valuable reference significance.Being an important process during the transaction of mergers and acquisitions,value assessment is the pricing fundamental in the negotiate with the target enterprise.So the research in the perspective of value is also necessary.So far the achievement in the academia focus on the introduction and contrast of the assessment method,along with the summarize of the proper method of different industries.As for the performance after M&A,domestic and foreign scholars studied the influence to performance of M&A from short and long terms.But the research exists now doesn’t connect the performance with the value assessment.This article cut in this point of view and connect the choice of value assessment with performance,use performance as the judge of assessment method,hoping to give a guidance for the M&A case in the future.Via the research of the case Leyard mergers Planar and the summarize of the discuss of assessment method existed in academia,this article has the conclusion that Leyard made a wise choice using income approach.And as a representative of overseas M&A,this case also indicate that because of the market discrepancy and the limit of accounting standard difference,cost method is less reliable which will mislead the enterprise lose the proper timing.With market approach,it only works when we comprehend the oversea market and the status of target enterprise.We have to be more sure of market expectation,and make sure that sample time span accordance.What’s more,electronics technology is a popular industry,the superior PE ratio reflects the market’s good attitude for its prospect.So we should assume a certain level of growth rate of the free cash flow for the firm to accurate the result of income approach. |
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