A Study On The Valuation Of State-owned Enterprises And Relative Holding Companies

In recent years,with the rapid development of China's market economy,China's comprehensive national strength has continued to increase,the socialist economy has entered a new normal,and deepening industrial transformation and upgrading is clearly the inevitable result of state-owned enterprises achieving value creation,maintaining their competitive advantage,and maintaining sustainable development.the road.The introduction of the new regulations on capital management in 2018 and the increasingly strict supervision of IPO policies of domestic enterprises have led more and more enterprises to seek mergers and acquisitions to improve their competitiveness.Mergers and acquisitions can strengthen the competitiveness and innovation capabilities of state-owned enterprises,improve the internal organizational structure of the company,enable scale effects of various resource combinations,give play to the competitive advantages of state-owned enterprises,expand the overall scale of enterprises,and reduce operating costs.Valuation pricing is the soul of all M&A transactions.Only the M&A parties agree on the pricing of the target companies,and the M&A transaction can be finalized.Therefore,the valuation of target companies has become the focus of scholars at home and abroad,which is conducive to the smooth progress of mergers and acquisitions.The focus of this article is also on how to conduct a reasonable valuation of Wenzhou Hongze Thermal Power to facilitate subsequent M & A transactions activity.This paper uses the theory plus case analysis method to explore the valuation of target companies in M&A transactions.On the basis of drawing on domestic and foreign research results and experience,the paper focuses on the asset-based and income-based methods,and compares the advantages and disadvantages of the two kinds of valuation methods.Then,through the case of Nanchang Water Industry's acquisition of Wenzhou Hongze Thermal Power,the whole theory is carried out.Sublimation and argumentation,combining theory with practice.This paper is divided into four chapters.The first chapter is the introduction ofthis paper.It mainly introduces the research background,research significance,literature review,research methods and innovation and shortcomings of this paper.The second chapter is the introduction of the case.Starting from the background of the case,it briefly introduces the transaction process and the evaluation object of this M&A.Chapter three is the case study of Nanchang water industry merging Wenzhou Hongze Thermal Power.The value of Wenzhou Hongze Thermal Power is calculated through the use of valuation method,and the valuation results are analyzed.A reasonable and effective result is selected.At the same time,the financial performance before and after the merger and acquisition of Nanchang water industry is analyzed horizontally and vertically.Chapter IV is the summary and outlook,which as the summary part of the full text,puts forward the case and the shortcomings of the paper,and puts forward the outlook for future research.