Research On The Application Of Income Method In Valuation Of Target Enterprises In Mergers And Acquisitions

With the increasing globalization of the economy,the increasing mobility of capital,the privatization of enterprises,joint ventures,mergers and acquisitions,enterprises and other activities are increasingly frequent,these activities are all involved in the assessment of corporate value.At present,China's rapid economic development,mergers and acquisitions are also increasingly frequent.2013 domestic M & A market in the number and amount of transactions have reached a new peak,listed companies in which mergers and acquisitions occupy a major position.Asset evaluation as an independent third party to provide value for the acquisition of professional judgment or expert advice,trading pricing is an important basis.As one of the three methods commonly used in the assessment,it is also an important method to evaluate the value of the enterprise.The income law is very scientific in theory and has irreplaceable superiority,which is becoming the mainstream method of enterprise value evaluation.The revenue method is the value of the asset being evaluated from the perspective of the expected return,and the M & A activity is often the revenue that the target asset can bring to the enterprise in the future.In theory,the income method is the most in line with the requirements of the assessment method.In view of this,this paper will give a brief overview of the relevant theoretical research in the field of mergers and acquisitions,as well as the enterprise value and enterprise value assessment introduced,the practice of the three major valuation methods-cost method,income law,Applicability on the comparative analysis,the income method is more suitable for the valuation of mergers and acquisitions.Case of this article Take the United States think strong technology companies to buy Ji'ao electronic technology companies,for example,the use of income law to assess the company,combined with industry conditions and company analysis and forecast the company's assessment,the company in the selected assessment The value of time.This paper expounds the application of the income method in the evaluation of enterprise value in M & A,which has played a positive role in the evaluation of the enterprise by using the cost method and the market method.Provides a theoretical and empirical basis.