Research On The B-S Model's Application In High-tech Enterprise M&A Valuation

Since the beginning of the 21 st century,there have been frequent mergers and acquisitions between global companies and the rapid expansion of capital,in addition,effective transactions between buyers and sellers have also increasingly depended on the assessment value of the reference target company,whether the valuation is accurate and close to market value,which is gradually the key factor to a successful M&A?The DCF method,asset-based method,market method,and other models and theories that traditional valuations are used to,are often easy to overlook the fact:in the actual investment and acquisition projects,the management decision-making will have a certain delay and lag in time.Due to the inherent limitations of traditional methods,property rights transactions are only limited to a certain point in time and do not consider the value of options.This can easily lead to large deviations when investors make investment decisions,which is detrimental to the effective fairness of both parties.Therefore,it is imperative to introduce real options pricing theory,which can not only make up for the defects and deficiencies of traditional assessments,improve the theory of M&A evaluation,but also help promote healthy development of the M&A market.The first part of this paper is to introduce the background of corpora te mergers,acquisitions and valuation,the main research results of domestic and foreign experts and scholars.Secondly,the paper will analyze the advantages and disadvantages of the three basic assessment methods,and point out the applicability of the option pricing method.The introduction of the option method is a powerful supplement to traditional methods,but not negative.The combination of methods is more conducive to the accuracy of assessment results and helps to increase the success rate of acquisitions.Then,it combines real-world corporate acquisition cases and performs fundamental analysis of the target company's financial data,etc.,and application analysis of the revenue model and the B-S model in the evaluation of the target company;finally,through the real options pricing method compared with the DCF method,and the acquisition of the M company's N summary analysis of the equity value results will further prove the validity and feasibility of the option law and provide specific recommendations.The research of the dissertation shows that the value of the target company in M&A should consist of its own value of the net asset and the value resulting from the uncertainty implicit in the M&A.For the value of its own net assets,we can directly use the traditional pricing valuation methods,such as the asset-based method(cost method),market comparison method(company comparison method),and the present value of income method(DCF model).The valuation of the uncertainty value(the value of the option)implied in M&A can be evaluated by using the option pricing method(B-S model).The final result is closer to the value of the real assets of the company and helps the parties to reach effective mergers and acquisitions.transaction.