Valuation Research Of New Third Board Company A Merger And Acquisition B Company

As the new third board market is an emerging market,although the new third board merger and acquisition started late,there are still many cases.How to evaluate it in the process of merger and acquisition is a topic of great concern to all parties concerned.So this paper chooses the case of the new third board company A merger and acquisition B company to study.Valuation is the most important work in the process of M&A.Choosing appropriate valuation method is conducive to promoting the success of M&A and improving the efficiency of M&A.Therefore,it is very meaningful to study the valuation of M&A Company B.This paper applies case analysis,comparative analysis and merger and acquisition theory to study the valuation of new third board company A and B.Firstly,it introduces the basic situation of AB company,the transaction payment method of A merger and acquisition of B company and the use of valuation method.Then use income method,market method and asset-based method to analyze the valuation of new third board company a and B in detail,then compare the three methods,and think that income method(FCFE)is more suitable for the valuation of M &A.Secondly,through analysis,it is found that the synergistic effect of M&A is not taken into account in the M&A of New Third Board A Company.The improper selection of valuation methods and estimation of discount rate are attributed to the difficulty in distinguishing capital expenditure from operating expenditure.The impact of intangible assets' life cycle is easily influenced by subjective factors.Through analysis,it is proved that the income method is still the most suitable method for M&A and B company.Division's valuation method.Finally,it is proposed that the synergy effect after M&A should be taken into account in valuation,and the correct valuation method should be chosen and the discount rate should be adjusted reasonably.The conclusions are as follows:(1)After comparing the three valuation methods,we know that the valuation of income method is 394.95 million yuan,the valuation of market method is 205.25 million yuan,and the valuation of asset-based method is not applicable to the valuation of B company.It can be seen that the results of market method valuation are unreasonable,while the results of income method valuation are very close to the disclosedvalue of Company B(395 million RMB).That is to say,the income method(FCFE model)is more suitable for the valuation of the acquired company B.(2)After the valuation of B Company,the acquired party finds that there are some problems in the valuation of M&A,such as the selection of valuation methods,the calculation of discount rate,the distinction between capital expenditure and operating expenditure.The reason is that the valuation model is complex,vulnerable to subjective factors,the impact of intangible asset life cycle,and the lack of accuracy in predicting the business development speed of B Company.(3)Aiming at the valuation problem,this paper puts forward the measures that need to choose the correct valuation method,adjust the discount rate reasonably and consider the future earnings forecast of the company after M&A when valuating,so as to make the enterprise more accurate in M&A valuation.