Value Evaluation Of M&A Enterprises Based On Free Cash Flow Method-

In the capital market,mergers and acquisitions are an important way for enterprises to quickly obtain the required resources and realize business expansion in the short-term.How to integrate resources after mergers and acquisitions and realize the enhancement of corporate value is also an important content that needs to be paid attention after mergers and acquisitions.As one of the important evaluation models,the free cash flow method has been widely used in practice.In the M&A activity,the key procedure is how to scientifically and reasonably determine the evaluation value of the target company.The evaluation result directly affects the investor's transaction consideration and future rate of return.Therefore,it is very strong to study the value of the acquired company in the merger.Realistic meaning.In this paper,the cash flow method is used to analyze the pricing of the YY company,which is a large-scale M&A activity in the e-commerce industry.The analysis of the driving factors of enterprise value proposes measures to enhance the value of enterprises.Scientific and reasonable evaluation of pricing work can be of great importance to the realization of M&A and reorganization costs in the capital market and to enhance the value of enterprises.By absorbing the research results at home and abroad,this paper mainly uses the literature research method,the index data analysis method and the mathematical model method to carry out the research and analysis of this paper.It mainly uses Excel and other tools to process and analyze the data.The content of this paper mainly includes three parts:Firstly,it summarizes the theories of domestic and foreign scholars on enterprise-value assessment,and builds the theoretical basis of research.Secondly,the free cash flow method is selected to study the case,construct the model and analyze the results to analyze the rationality of the evaluation results.Finally,on the basis of the evaluation results,analyze the value drivers of the case enterprises,and further decompose them,and put forward corresponding value management opinions to the management.Through case analysis,it is concluded that the consideration paid by the acquirer is more favorable to the main shareholders.At the same time,through the analysis of value drivers,this paper can bring practical significance to the value evaluation of the acquired enterprises in the merger.