Research On Improvement Of Income Approach And M&A Value Evaluation Of Internat Company

With the advent of the "Internet +" era,the Internet has gained more and more influence in the economic Society.Internet companies are also more and morewith the advent of the Internet era,and because the Internet companies are different from traditional businesses,the traditional valuation methods are no longer applicable to Internet companies.Therefore,based on the uniqueness of Internet companies and various factors that affect their value,it is very important and urgent to formulate a reasonable and effective value evaluation system for the sustainable development of the Internet industry and the investment decisions of Internet companies.Compared with the traditional industries,Internet companies mainly have short development cycle,a few references,and they are mostly asset-light enterprises,highly dependent on the consumers viscosity,and the technology is highly intensive,these characteristics make Internet enterprise value that is not only affected by financial factors,but also influenced by non-financial factors such as intellectual capital,technological innovation ability,product competitiveness and synergies in M & A activities Therefore,in the process of mergers and acquisitions,the methods for valuing Internet enterprises should consider various factors.This article intends to consider the value drivers of Internet companies,rebuild the Internet value index system with the non-financial indicators,andimprove the income approach with FAHP,then put forward a new idea for the evaluation of Internet companies.First this paper elaborates the research results about M & A valuation methods both at home and abroad,and then analyzes the limitations of the income approach in the M&A activities of Internet companies by combing the characteristics of Internet companies.Then,based on the analysis of the value drivers of Internet companies,the Internet enterprise value index system is reconstructed with the non-financial indicators.Next,FAHP is adopted to assign weight to each index and to quantify the qualitative index.At the same time,the improvement steps and the determination of relevant parameters are elaborated.Finally,the improved income approach is applied to the specific case to calculate the comprehensive enterprise value of the Sooying Co.,Ltd.,and taking the real value of the case as a reference object,which proves that the improved income approach is more suitable for the evaluation of the Internet companies' value.So it can provide a new research idea for the evaluation of the Internet companies' value,and provide an evaluation basis for the pricing of Internet companies for IPO,M & A pricing for Internet companies.