Study On The Application And Improvement Of Enterprise Value Appraisal Using Income Approach In M&A Of Listed Companies

With the development of our economy and the improvement of the socialist market economy,the merger and acquisition(M&A)activities in the capital market also increased.By exerting the positive force of the capital market,the enterprise management pattern and the market position have been improved,the vitality of the economy development has been enhanced,and the stable and sustained development of China's economy has got an strong impetus.Asset appraisal plays an important role in M&A activities as an independent third party providing the criteria for asset pricing.The selection of evaluation method,the rationality of the model chosen,the accuracy of parameters have a significant impact on the evaluation results,and on the determination of the fair value of the trading assets in M&A.In enterprise value assessment,the three main methods are frequently used,the income method evaluates enterprise value from the perspective of future earnings,in line with the features of asset returns and corporate going-concern assumption,so it has been used more and more widely.With the development of the M&A of listed companies,the income approach application situation of the bidding company in M&A will play a more and more important role.Taking the enterprise value assessment report disclosed by listed companies in Shanghai stock exchange in 2018 as the sample,this paper firstly studies the M&A of listed companies and the enterprise value assessment activities in M&A to reveal and analyze the current situation and characteristics of M&A and enterprise value assessment of listed companies in China.Then on this basis,further studying the income approach for enterprise value assessment,to reveal the current status of application of the income method and its characteristic,discuss the shortcomings of income method application,and push forward the improvement of the application of income method in order to promote the practice of enterprise value income method evaluation level.