Research On M&A Pricing Based On Real Options

After more than 30 years of rapid development,China's overall economic strength has been significantly strengthened,and the country's income has also increased year by year.There has also been an increase in spending on items such as tourism and entertainment that emphasize spiritual enjoyment.On the other hand,the maturity of the Internet technology and the continuous decline in the cost of use have made the Internet popular,and the number of national Internet devices is increasing.In this context,the online travel industry has emerged and developed in recent years.Fierce industry competition and unlimited market space have caused companies in the industry to be chased by various capitals.M & A events have occurred.Because it is based on Internet technology,such enterprises have the characteristics of light assets and high uncertainty.How to price such enterprises has always been a common concern.In this context,studying the pricing problems of such emerging enterprises not only enriches the theoretical research of the real option pricing model,but also provides new ideas for the pricing of Internet companies in the context of mergers and acquisitions from the perspective of online travel companies.Therefore,this paper has theoretical and practical significance.In this paper,we have selected two online travel companies CTRIP merger QUNAR investigate where the pricing problem of the case.Due to the fierce competition in the online travel industry,the high degree of uncertainty in the direction of the parallel development,and the high degree of uncertainty after the merger,the real option pricing method was adopted for pricing research.Through the analysis of the specific real option characteristics of the QUNAR network,the B-S formula was used to price QUNAR.The real option method was found to be closer to the actual price,and based on this,the relevant recommendations were put forward.