Study On The Application Of Overseas M&A Valuation Method And The Risk Of Premium Acquisition

Overseas mergers and acquisitions have important strategic significance for Chinese enterprises,especially in the context of the "Belt and Road" initiative,and play a key role in China's participation in global economic integration and the promotion of China's sustainable economic development.Overseas mergers and acquisitions can help enterprises develop rapidly and achieve effective resource allocation in a short period of time.They can also use the synergies brought by mergers and acquisitions to promote the technological development and management upgrade of domestic enterprises.In recent years,the rapid development of overseas mergers and acquisitions of Chinese enterprises has brought a large amount of Chinese capital to the world stage and allowed Chinese enterprises to have a greater say in the international market.However,overseas mergers and acquisitions are different from domestic mergers and acquisitions.Their acquisition costs are higher and their operations are more complicated,and failed mergers and acquisitions occur from time to time.Therefore,rational and accurate valuation is the core of overseas mergers and acquisitions.It is particularly meaningful to study the valuation of Chinese companies' overseas mergers and acquisitions and the high premium risks that accompany them.This article selects the case of Jifeng's acquisition of Grammer AG for analysis.As one of China's most distinctive overseas mergers and acquisitions in 2018,Jifeng's merger with Grammer AG is a typical auto parts company that plays a "white knight" and conducts a "snake swarmlike" overseas merger.This article takes this as the research object,and conducts a comprehensive and in-depth analysis of Jifeng's overseas merger and acquisition arrangements and valuation results.First,this article analyzes the general situation of China's auto parts industry where Jifeng shares are located and the characteristics of Ningbo's industrial clusters.Second,it introduces the general situation of the parties to the merger,the motivations for the merger and acquisition,and the specific merger process.The method of financial index analysis evaluates the operation and development capabilities of both parties in the merger and acquisition,and then uses the improved DCF model to estimate the value of Grammer AG and make a sensitivity analysis of the valuation result.Finally,this article analyzes the potential for goodwill caused by the Grammer premium acquired by Jifeng Impairment risk,debt risk,pledge risk,etc.,and put forward relevant suggestions to provide a certain reference for overseas mergers and acquisitions of China's auto parts industry.