Study On M&A Valuation Of Pharmaceutical Enterprise

M&A as an important means of resource allocation,becoming a way for enterprises to grow up.With the release of the new GMP,the mergers,restructuring and listing activities of pharmaceutical has become increasingly frequent.Whether outside investors,managers or other internal stakeholders,the attention of the company's value is increasing.Analysis the M&A cases in recent years,the fail M&A examples because of the valuation are common.Therefore,to find a reasonable method to value pharmaceutical businesses' val(?)ation is imminent.The pharmaceutical industry is a sunrise industry,has a vast prospect,correct assessment of the intrinsic value of pharmaceutical companies can provide a right basis for decision making of the development of enterprises.Although the development of the income approach started late in our country,but the development of capital markets and the characteristic of pharmaceutical companies themselves determine the fact that the process of assessing the value of the enterprise income method is superior to the cost method and market approach.In recent years,relevant institutions and personnel have increasing attention and importance about the income approach,the theory and practice of the income approach are becoming increasingly sophisticated,society has presented a larger space for the income approach.This paper studies the application of the income method about the process of mergers and acquisitions in the pharmaceutical.Firstly reviewed the theory about enterprise value and enterprise value assessment valuation,introduced the different models of income method in detail.And then combined the characteristics and difficulties about pharmaceutical companies,analysis the limitations of the market approach and cost approach.And apply it to a specific case company B,combined with the specific case,studies the problems in the process,such as income and the discount rate,and proposed improvement measures.Application of the income approach requires further reflection,affirming its relevance at the same time continuing to modify the problems,accelerate theoretical study of income approach.