Research On The Value Assessment Method And Application Of M & A Target Enterprise Based On Value-added Theory

With the rapid development of market economy, China's M & A activities in the industry,regional scope,the amount of mergers and acquisitions,etc. have shown a rapid development trend, corporate mergers and acquisitions has become an enterprise to expand the scale and seek development one of the important ways. In 2013, China reached the highest level in mergers and acquisitions and mergers and acquisitions, so it was also known as China's "first year of mergers and acquisitions." However, in this M & A tide, the failure rate of M & A behavior is higher, M & A results are not ideal.The main reason for the failure of M & A is that the M & A price is unreasonable, and one of the main reasons leading to the unreasonable price of M & A is that there is no method of evaluating the value of M & A.This paper analyzes the current enterprise value evaluation methods in China,including the asset value evaluation method, the market comparison method and the income discount method. These methods have certain scientific methods. But their biggest drawback is that they do not take into account the value added of M & A firms.This paper analyzes the application of the method of assessing the value of the target enterprise in our country at present, and puts forward the method of assessing the value of the target enterprise based on the value increment. The value of the target enterprise in the M & A activity should include the intrinsic value of the enterprise,Value, corporate option value. And then combined with the actual case of the acquisition of Fuhua Ecological Company, the paper explains the specific application of the target enterprise value evaluation method based on the value increment, and on the basis of the above analysis, from improving the assessment environment,perfecting the legal system and improving the intermediary service organization Level and so on to improve the application of the target enterprise value evaluation methods related recommendations.