Research On Valuation Of Corporate M&A In Oil And Gas Assets

M & A is a powerful engine for the development of the world economy.In the sixth wave of mergers and acquisitions in the world economy today,large-scale mergers and acquisitions,cross-border mergers and acquisitions surging.Oil and gas resources is an important factor related to national security,is the cornerstone of China's economic development.Although China's vast territory and abundant resources,but the energy reserves is limited,especially in the huge amount of population and rapid economic development under the condition of oil and gas resources,mergers and acquisitions,not only some enterprises to go,to achieve their own transformation,bigger and stronger,but also for China's energy security plays an important role.The pricing problem of M & A is the core of M & A,which determines the success or failure of M & A.In practice,many people tend to confuse the pricing and valuation,that pricing is valuation,ignoring the game process.Combined with the practice in the acquisition process,I will present mergers and acquisitions can be divided into two processes: dynamic valuation,game theory,which is based on the valuation of the underlying asset,the parties to the transaction after the game to get pricing.Selection of valuation methods in the valuation of the underlying asset,now the value of traditional assessment methods commonly used on the market income method,cost method,market method,is the information to determine the static evaluation method based on the neglect of information uncertainty and management flexibility.Especially in the oil and gas assets valuation,the value of international oil prices,the late development costs,international oil prices and factors such as political and global economic fluctuations,perplexing,late development scheme is also affected by a number offactors will be adjusted,but also the development of oil and gas assets are often associated with natural gas as a by-product,these are is unable to estimate in advance.These will have a greater impact on the valuation of oil and gas assets,making the valuation is not accurate.The innovation of this paper is to divide the pricing of oil and gas assets into two dynamic processes,that is,valuation and game.The paper studies the pricing process of M & A from the two parts of real options and cooperative games.New energy acquisition of Zhejiang,borrow treasure,the underlying asset is an American case oil as the starting point for the discussion of the merger and reorganization of the pricing has caused a lot of question on the Internet,many people questioned the valuation assumption is not reasonable,there is a possibility of deliberately exaggerating the valuation.This paper will start from this case,in theory,based on practice,innovation put forward a pricing model for oil and gas assets acquisition applicable valuation--using the income method combined with the option method in the valuation of the underlying assets,on the basis of the full game pricing.After the scientific argument of the model,using the model of innovation,in the actual situation at that time,the use of the simulation process of the acquisition of Zhejiang new energy pricing,treasure case data and put forward the reasonable assumption of calculation,to prove this model in practice in the operation.The acquisition of the pricing method of fuzzy opaque,unscientific methods will not only increase after mergers and acquisitions business risk,and also by some bad elements,as a means of transfer of benefits,harm the interests of small shareholders in general,involving a huge amount of overseas oil and gas assets in mergers and acquisitions,the unreasonable pricing will directly lead to the loss of national interests.The loss of the interests of either party does not comply with the law or morality,in the market economy,does not allow the loss of the interests of the interests of stakeholders behavior.This paper started from the technical level,starting from the new energy acquisition of Zhejiang,treasure case,to expect the acquisition and find out the existing problems and puts forward solutions.I hope this valuation model of oil and gas assets by this,not only for new energy acquisition of Zhejiang Bao Ben case,hope to be extended to the whole asset acquisition of oil and gas and the future more restructuring activities,to ensure that in mergers and acquisitions in the pricing process,any party not to be deceived,safeguarding the interests of three parties.