Research On The Valuation Of Internet Enterprise M&A Based On Synergy

Since second half of the 21 st century,human race has entered into an age of information,a new trend kind of Internet economy has emerged and developed rapidly.It has not only broken the traditional business concepts and operation model but has also changed peoples' lifestyle thoroughly.With the fast development of the Internet and the gradual maturity of the Internet economy,the slowdown trend in the speed of users' growth,and the sharp rise in the number of the business have made the traditional Internet business more competitive than before,so more and more Internet companies have chosen to enter into a new kind of mobile Internet markets,“ Internet Plus” the mixing of the traditional industries have extent its own business type,it can also have improved the companies' M&A abilities of bearing risks.In this context,the Internet's activities have begun to perk up,and more and more companies have begun to join the wave of M&A.As a result,it is very important that we should make a full research with the value creation of the real estate M&A.In this thesis,on the basis of the existing valuation theory,we can build a more comprehensive and accurate model for the Internet enterprise M&A activity and the acquisition of enterprise value assessment model.At first,the thesis analyzes the existing valuation theory and its applicability and limitations,so we can draw a conclusion that the DCF model is thought to be a more perfect theory in the existing valuation theory.Therefore,we choose this kind of model to be evaluated by the existing value of the M&A of the Internet corporations.However,after analyzing this condition,we have found that the model can't fully embody the potential value of the acquired Internet companies.By studying the mergers and acquisitions of overseas companies' cases,we have found that the potential value of an acquired Internet company is usually expressed in the form of options.This thesis analyzes the real options which exist in the analysis of Internet enterprise acquisition,the model is evaluated by the B-S model which is based on the detailed analysis of the pricing method of real options.Finally,the synergies caused by mergers and acquisitions are not reflected in conventional valuation models,therefore the effects of synergies are quantified by analytic hierarchy process,and build three models,the existing value,the potential value and the whole value,all of those three values of the enterprise are modified by the synergistic effect,and at the same time,these three models are analyzed by using the comparison of qualitative analysis and case analysis,so that to ensure the most effective model.Up to this point,this thesis builds a new valuation model based on the DCF model,the B-S model and the Synergies,and are carried out in order to proving its effectiveness.