Research On The Evaluation Of The Synergy Effect Value Of Merger And Acquisition Of New High-tech Enterprises

Nowadays,as capital market is becoming increasing complete,merger and acquisition has become the preferred approach of enterprise expansion.Millions of enterprises have achieved leapfrog development through merger and acquisition.At the same time,merger and acquisition of new high-tech enterprises also happen frequently during the new round of technological transformation.Synergy effects generated by merger and acquisition are not only one of the main motivation of enterprises acquisition but also the important basis of companies to determine the price of merger and acquisition.Therefore,how to completely and accurately assess the effect value of M&A,and how to realize the value after acquisition are the key factors that determine whether the M&A is success or not.After the implementation of merger and acquisition,the merger and acquisition enterprises will optimize,integrate and redistribute the relevant assets of the target enterprise,including projects,funds,and human resources.The complement and support between enterprises,the optimal configuration of the capital assets,and the new knowledge development and diffusion brought about by the fusion of talents will promote the enterprise to produce a variety of synergy effects in all aspects of the operation.Therefore,there is a great uncertainty in synergy effects.While the uncertainty,flexibility and growth value of the synergy effects of new high-tech enterprises are greater,which makes the valuation of M&A synergies more difficult to forecast than that of traditional enterprises.Compared to traditional companies,the discounted cash flow,which is traditional,approach can't fully reflect the uncertainty,flexibility and growth value of synergy effect so that this evaluation method has defects in evaluating synergies.In contrast to traditional discounted cash flow method,on the one hand,real options can consider the uncertainty of enterprises' future profit well;on the other hand,incorporating the cost sinking in investment and flexibility of project implementation into the evaluation model,which can makes evaluation results more accurate,thus helping the enterprise investors to make better decisions for the enterprise and providing powerful basis for the success of the enterprise M&A.This paper sums up the related literature about synergy effect and real option,combined with the characteristics of synergy effects and new high-tech enterprises,points out that the effects produced during the process of the M&A of new high-tech enterprises are more typical of option.Especially new high-tech enterprises' merger and acquisition process of synergy effects,the characteristics of real options is more obvious.It also demonstrates the applicability of using real option to evaluate the synergy effect of M&A.On this basis,the paper offers a typical M&A case of new high-tech enterprises,discussing the practical application of real option model to predicting synergy effect value and its results-the M&A of Jin Zheng technology co.LTD and Beijing Lian Long Bo Tong electronic commerce technology co.LTD.In this case,this article will first use synergy effect theory to analyze the merger and acquisition incentive and synergy effect of case firms and its application in real optionsmodel to evaluate the target company value and synergy effect to obtain the whole value of an enterprise and finally reach the reasonable price of M&A deal.Research shows that the synergy effect scale can be better measured by real option model and that the value of a new high-tech enterprise can be more reasonably evaluated when traditional discounted cash flow approach is applied,which provides reference for assessing the synergy effect value of new high-tech enterprises M&A and determining the reasonable price of the deal.