Research On M&A Pricing Based On Option Game Theory

Enterprise mergers and acquisitions play an important role in the expansion of enterprises,whether in the domestic or international markets,mergers and acquisitions are endless.Merger and reorganization is a complicated process,in the process of pre-,middle and post merger,the pricing of mergers and acquisitions is a core step,which plays a decisive role in the success or failure of the whole activity.The traditional pricing method of mergers and acquisitions assumes that the enterprise management rigidity is unchanged,the static value evaluation value of the target enterprise is the pricing result,the pricing and valuation are not correctly differentiated,and the game characteristics of the price negotiation are neglected,and the result of the pricing can not reflect the value of the underlying assets.This article does not negate the traditional method,on the basis of it,the pricing behavior of mergers and acquisitions is regarded as a dynamic process,taking into account the flexibility and competitiveness of mergers and acquisitions,introducing option game theory and constructing corresponding pricing model,which divides the price of mergers and acquisitions into three components,namely: the value of assets,the value of the option and the loss which make up for the shortcomings of traditional valuation methods.On the basis of theoretical analysis,this paper introduces the new trend industrial mergers and acquisitions of Zhejiang Benniu Bao,this case in the market situation,the controversy,there are a large number of pricing problems.In this paper,we introduce option pricing and game negotiation on the basis of traditional income method,and then compare the original pricing with the initial price,and highlight the superiority of the model by analyzing the unreasonable of the original pricing and the rationality of the option game model.It is hoped that this model and case study can make some contribution to the more scientific pricing in the field of mergers and acquisitions,provide experience and methods for more mergers and acquisitions in the future,and make the pricing of mergers and acquisitions more scientific and ensure that the interests of all parties are balanced and preserved in the mergers and acquisitions activities.