Research On The Market Method In The Value Evaluation Of Film Company M&A

In recent years,with the steady expansion of the size of the capital market,the integration of film companies,backdoor listing and overall listing,and sale of major assets have all been inseparable from the valuation of film companies.Under the guidance of the national cultural policy,the film companies that have gradually grown and expanded are attracting more and more investors.The endless mergers and acquisitions between companies will inevitably lead to the value assessment of film companies being highly valued.The traditional cost method and income method have already had problems in the evaluation of film companies.The light asset nature of film companies makes the asset-based method(cost method)seriously underestimate their own value,and the subjectivity of the income method has also become increasingly prominent as a drawback.Therefore,the application of market method in film company mergers and acquisitions is particularly urgent.The application of market method in China’s capital market is later than that of developed countries.The scope of application is narrow.According to cases in the practice industry,the accuracy of the assessment results is relatively low,and it is urgently needed to study to make the market method evaluation process more accurate.As we all know,the market method is subjective to the selection of comparable companies,correction of value ratios,and liquidity discounts.Therefore,the accuracy of its valuation is questioned.Second,when adopting the comparable company method,select comparable companies to consider video.The company?s assets,product value ratio,certainty,and decay speed are among the features of the company.Therefore,on the one hand the market assessment of film companies needs to consider the importance of subjective change,and on the other hand consider the company?s own characteristics.As mentioned above,it is more important to accurately evaluate film companies.This article will focus on the value of specific mergers and acquisitions cases in which the China United Assets Appraisal Corporation adopts a market approach to evaluate the value of film companies,and proposes its own improvement plans for the more market-oriented approach to market selection.At the same time,the non-financial indicators that include the characteristics of the company as a development company,that is,the comprehensive financial indicators of the non-financial indicators of the film characteristics are fully reflected,and then the comprehensive indicators are used in the selection of comparable companies in the entropy method,and their weights are determined.It can fully reflect the similarity of comparable companies,and then make differential adjustments to the value ratios through weights,making the value evaluation process of the entire market method more perfect,making the evaluation results more meaningful for practical reference.