Research On The Valuation Of Listed Company A Merger And Acquisition New OTC Market Company B

In recent years,China's economic growth has gradually declined,some industries have experienced overcapacity and declining profitability,the central government and the local government have adopted a series of measures to improve the ability of the capital market to serve the real economy and to achieve the transformation and upgrading of the industrial structure.Since the nationwide SME share transfer system was gradually expanded in October 2013,the number of listed companies in the New OTC market has been increasing,after continuous development,the new OTC market has gathered more and more high-quality technical strength and large development space the high-quality enterprise,which have brought new transformation and upgrading channels to listed companies.Under this background,listed companies can realize their own development and release the new vitality of the future economy through mergers and acquisitions,deepening the transformation and upgrading of industrial structure,therefore,the acquisition of enterprises with potential development space in the new OTC market has become a sensible choice for listed companies to break away from the bottleneck of profit growth and find other development directions to transform and upgrade,the wave of listed companies acquisition of the new OTC market listed companies has swept through,but they want to successfully carry out mergers and acquisitions for the target companies,value assessment has become a key step in the M&A process.This paper selects the case of listed company A to acquire the new OTC market company B,it is a case of large transaction volume in recent years,it is meaningful to analyze the rationality of the valuation of mergers and acquisitions.This paper firstly introduces the basic situation of both parties,the development of the new OTC market and the current status of mergers and acquisitions,and the whole process of mergers and acquisitions;then the analysis of the M&A case is also the core part of this paper,firstly,it analyzes the M&A motivation of the M&A parties,secondly,it mainly analyzes the M&A valuation process.In the valuation,it first evaluates it by the traditional valuation method,however,due to the intangible assets such as core technologies and product patents in the process of M&A,especially high-tech enterprises,their R&D and innovation have high risks and high returns,and there are potential expansionopportunities in the future development after the completion of the merger,with certain option characteristics,if the traditional cash flow discount method is used for valuation,the hidden potential value may be neglected.Therefore,based on this,the real option method is introduced to supplement it,which can reveal the hidden potential,the role of value makes the final valuation result more reasonable and accurate;finally,the merger case is summarized and the conclusion is drawn,in the similar merger case,the cash flow discount method and the real option method can be combined to estimate,it provides a new idea and perspective for valuation activities,at the same time,the real option method will be more and more widely used in the valuation of the new OTC market companies after continuous improvement.