Merger And Acquisition Valuation Of A Company At Innovation Layer Of The NEEQ

With the start of the system of Innovation Layer in National Equities Exchange and Quotations(NEEQ),companies of the Innovation Layer get the attention of listed companies which want to expand through merger and acquisition,because they have better growth and their stocks have better liquidity.In addiction their information disclosure and operation are become more and more strict.The amount of cases of merger and acquisition between listed company and company of the innovation layer is growing.But some of such cases fail,because of difference of valuation and the implicit legal risks.The valuation becomes the critical of mager and acquisition.This paper,first,introduces some facts of effecting the valuation of a company,such as industry,prodct,technology and model of bussiniss,and financial situation.In the same time,we introduce some different valuation models.The second step,this paper elaborates the status of market of NEEQ and the standard of Innovation Layer.Then we analyze the features of companies of the Innovation Layer.So we can make conclusion that companies of the Innovation Layer have some common features,such as high technology industry,small scale,strong growth,number of shareholder growing and financial strain.And then this paper introduces an acquisition case between Shanghai Kinlita Chemical Co.,Ltd.and Shanghai YC Culture Media Co.,Ltd..In addiction,we try to analyse the reasons and effects of the difference between the price of payment and the price of market making.The last,through the charateristics of the Innovation Layer,we select the EVA model to value YC Culture.The industry and the finance situation of YC Culture are elaborated,and the theoretical valuation of YC Culture is computed.And this paper try to give some advice of the supervise about such merger and acquisition.