Research On Pricing In Commercial Acquisition Of Non-performing Assets

Four Asset Management Companies,local asset management companies,private investors,and foreign-funded institutions are all marching towards traditional non-performing assets since China Banking Regulatory Commission and Ministry of Finance released the lists of local asset management companies which are authorized to purchase non-performing assets package competing for trillions of non-performing assets under the current round of economic cycle.Such huge influx of funds has resulted in a number of high-price asset packages,raising the bottom price of these asset packages.As for investors which take on the primary market package of banks,for instance,asset management companies,the scientific pricing of non-performing assets during commercial acquisition is critical to company's sustainable development as well as its subsequent disposal.This paper takes Y Company's acquisition of bank asset package as an example,It provides a solid analysis of the acquisition process and pricing model of Y company based on the information asymmetry theory and the method of internal rate of return which is adopted in financial investment analysis.This paper aims to make a contribution to the further improvement of the pricing of non-performing assets in commercial purchase.It holds that there is a lack of in-depth analysis of the background of asset packages,the pricing of Single account debt is too conservative,and there is an urgent need to improve the selection of parameters.In addition,the classification framework of non-performing assets package and the evaluation idea of single creditor assets in the asset package also need to change.In order to solve these problem,the application of internal rate of return method to optimize the pricing of the asset package which provides a visual representation for corporate executive while making decision is required.This article provides a clear idea and framework to calculate the value of asset packages,as well as a guideline for practice.