Study On The Valuation Of H Company In Merger And Acquisition

Auto parts industry is the foundation of the whole auto industry chain,which involves large-scale manufacturing,complicated process and high technology.Production experience and technology development ability are the key to obtain the market.Only through merger and acquisition can domestic auto parts enterprises achieve rapid technological breakthrough and scale leapfrog development,and enter the middle and high-end market.The implementation process of overseas M&A projects is complex and professional.Based on the overseas M&A cases of H company,a domestic auto parts manufacturer,this paper analyzes and studies the important link of project value assessment in the process of overseas M&A.This paper systematically sorts out relevant literature and theories of M&A and valuation to lay a foundation for case analysis.Furthermore,it introduces the implementation process of H company's M&A project,reviews the methods and calculation process used in value assessment,and summarizes the problems in valuation.This paper studies the mutual verification relationship between cash flow discount method,relative valuation method and asset method,summarise and analyse the problems of each valuation method,compares the advantages and disadvantages of different evaluation methods,calculates the impact on the valuation results,and puts forward correction plans for this case in order to come out with a more reasonable valuation.Specifically,in order to calculate enterprise value more accurately,full consideration should be given to 1)the macroeconomic environment and risks of the country where the acquired company is located and 2)the characteristics of the acquired company,the relevant coefficient in the valuation should be modified accordingly to obtain more accurate valuation results.This study can provide a more profound understanding of the development trend and industrial environment of the auto parts industry,so as to find the most suitable valuation method for the auto parts industry.In the practical operation,it is found that different valuation methods play different roles and are indispensable.Auto parts manufacturing belongs to traditional manufacturing industry and has a mature production and sales model.Especially for companies with stable historical operating data,cash flow discount method is a reliable method of value assessment.In order to calculate enterprise value more accurately,we also need to take full account of the company's risks and advantages,and adopt a variety of valuation methods to control the valuation results within a reasonable range,and use different methods to verify and supplement each other.The significance of accurate valuation in M&A is to help acquirers to define the core value of the target company and gain the initiative in transaction negotiation.Reasonable valuation plays a key role in facilitating the aquisition,achieving the goals of both parties,so that to achieve a win-win situation in an acquisition case.The purpose of this paper is to summarize experience on the basis of case study,and improve the implementation effect of overseas M&A projects of auto parts enterprises,make the capital market correctly understand the value of Auto parts companies,and thus improve the probability of successful transaction between investors and investors.The overseas acquisition experience sharing of risk control and other key factors in overseas M&A projects of Auto parts enterprises is conducive to the integration and refinancing of Auto parts industry,the overseas expansion of domestic companies,and the initiative in the capital market.Finally,the paper summarizes the key successful factors in the overseas M&A projects of auto parts enterprises,which can serve as a reference for the implementation of future M&A projects.