Market-based Mergers And Acquisitions Research On The Investment Value Model Of M&A Enterprises Based On The Return On Investment Of Mergers And Acquisitions

In the process of mergers and acquisitions,the two relevant parties all use the same valuation conclusion provided by valuation a company as enterprise pricing reference.From the perspective of value types,most of them are defined as market value.For the mergers and acquisitions parties or the purchasers which are listed company mostly,the valuation type should be investment value,which makes both parties need to negotiate under the same valuation types but with different purposes.As a result,it is necessary to separate the valuation process and purpose.When the both sides form their own pricing basis,they can start the negotiation.The third party,valuation company,should concern about the return value and offer consultation service to the acquirer when it is difficult to quantize the synergistic effect.As the valuation market structure has changed deeply,the traditional market structure has been adjusted profoundly,the range of the emerging market has been expanding and the service function of valuation receives continuous attention by the government under the new economic norm,the valuation industry should adapt themselves to the new norm and expand the service field.On the perspective of studying valuation methods,the writer think it is reasonable to use LBO valuation model to construct the investment value quantization model(combining the financial structure after the acquisition with asset pricing during the acquisition)when it is hard to consider about the synergistic effect.When this model takes the usage of valuation factors of the underlying assets and the sources of funds during appraising into account,the appraisers can make sure of the model parameters and the financial structure via analyzing and calculating the returning rate and sensibility analysis.As putting LBO valuation model into pricing is unique,the writer introduces the usage of the model via a real case and calculates the investment value by the use of combining asset appraisal conclusion with an acceptable returning rate.Otherwise,the writer proposes a reasonable transaction price range as well as a method to compare the value and confirm the rationality of the investment valuation to improve the model.Hope it can make a little inspiration for the research of M&A valuation.