Value Evaluation Study Of Homelnns Hotel Group In NASDAQ

In the process of merger and acquisition,assessing the value of target enterprise is an important process,can have a crucial impact on M&A.As China's economic development and with the fastening of steps to adjust domestic productive structure,more and more M&A cases appear in our country.Acquiring firm become more concerned about how to evaluate the target enterprise more reasonably and accuratly.Because of reasonable pricing based on the correct valuation of M&A target enterprise,pay attention to the study of valuation is conducive to improve the success rate of M&A.This article first elaborates the relates domestic and foreign scholars' research results in the aspect of enterprise value evaluation,compares and analyzes the common methods' advantages,disadvantages and applicability of enterprise valuation,including cost method,income method,market method and option method.Through analyzing the characteristics and functions of enterprise value evaluation in M&A,and by understanding application status of M&A enterprise valuation method in practice,this article chooses the free cash flow discount method and marketing approach to conduct systematic theoretical analysis.This article focuses on analyzing a specific case of Beijing Tourism Hotel Group purchase Homeinns Hotel Group.First introduces the specific situation of the case,analyzes the background and motivation,to lay the foundation for predicting the related parameters of valuation models.In view of the Homeinns Hotel Group,analyzes the advantages of enterprise free cash flow discount model and market method.Finally select the enterprise free cash flow of two phase growth model and P/e ratio method to evaluate.In order to apply the valuation methods to the practice better,this article elaborates the evaluation processes of the two evaluation methods in detail,includeing acquiring,analyzing and calculating each parameters.FCFF method evaluation results is 9.962 billion yuan.P/e ratio method valuation result is 10.925 billion yuan.This paper argues that both are reasonable enterprise value assessment,and each has its advantages,so take its average 10.444 billion yuan as the enterprise value of Homelnns Hotel Group.Finally,this article compares the valuation result with the actual purchase price,confirms the conclusion of the article.This article hopes to build reasonable and effective valuation models through the analysis of specific case,to provide powerful basis for both sides of the M&A,especially for the Nasdaq listed enterprises and the hotel industry merger integration.