Research On Synergistic Effect Of Sunwave M&A Juwang Technology Based On Real Options

Enterprise mergers and acquisitions have been born for over 100 years.Under the impetus of market forces,there has been significant development achieved in a large number of enterprises through mergers and acquisitions.In the merger and acquisition,it is crucial to deal with a reasonable valuation of the acquired company and propose a suitable quotation.An improper quotation can cause the losses to both parties,which will affect the integration after the merger and result in the failure of the merger.The method of traditional valuation only uses the discounted cash flow method to measure the enterprise value,whereas it ignores the value of the synergy in the process of enterprise integration after the merger,which results in low valuation.If a reasonable and practical method can be used to measure the synergy and make the valuation of the acquired company more accurately,the M&A enterprise can measure the value of M&A in a more accurate and macroscopic perspective.That could improve the success rate of M&A and promote the development of the industry.According to the synergistic effect theory and the real option theory,this thesis believes that the synergy effect in the process of mergers and acquisitions has the option value.The merger and acquisition of enterprises is the exercise process of real options.Therefore,the option value in the synergy effect can be calculated by using the BS option model.In this thesis,it investigates and analyzes the Sunwave merger and acquisition Juwang technology,the motivation of M&A,the synergy effect in M&A regarding the synergistic effect theory.Also,it comprehensively applies the cash flow discount model and the real option model to measure the synergy effect of M&A.The reasonable transaction price of the target company validates the effect of the real option model in measuring the value of synergy and the complementary effect of the traditional cash flow discount model in measuring the enterprise value.Finally,the synergy effect is verified by the changes in the company's various parameters.Through the analysis and verification of the thesis,it has been found that Sunwave merger and acquisition Juwang technology has synergy effect,and the real option model is very suitable for measuring the dynamic synergy effect,combining with the static synergy effect measured by the cash flow discount model,which can more accurately measure the merger and acquisition.Synergies and further identification of the value of the target company provide the insight into mergers and acquisitions and subsequent synergies.