Research On Value Evaluation Methods And Models Of Overseas Mergers And Acquisitions

With the gradual deepening of the trend of economic globalization,Chinese enterprises are constantly emerging in the international market.From the development strategy of "going out" to today’s "One Belt,One Road Maritime Silk Road",our country continues to encourage enterprises to go abroad.In order to improve the international competitiveness of enterprises and establish internationally renowned brands,the number and scale of overseas mergers and acquisitions by Chinese enterprises have increased year by year since 2012.However,overseas mergers and acquisitions are faced with many uncertainties,complex environments,and high risks.The failure rate of overseas mergers and acquisitions in my country is relatively high.The phenomenon of high-premium acquisitions emerges one after another,and some companies suffer huge losses.Therefore,it is very important to evaluate the value of overseas target companies before mergers and acquisitions.,the evaluation value can bring reference to the enterprise and provide guarantee for the enterprise.There are relatively few studies on the value of overseas M&A target companies in my country,and relevant case studies are even rarer.According to the background,this paper puts forward the research purpose and significance.By arranging and analyzing domestic and foreign literature,it proposes to divide the overall value of the enterprise into existing value and potential option value,and use the income method to evaluate the existing value.A grey forecasting model is constructed when forecasting cash flow to reduce the subjective impact of the evaluation process;the potential option value is evaluated using the real option method.Finally,taking Midea Group’s acquisition of KUKA as an example,the value of KUKA Group is evaluated based on the above methods.The research method in this paper makes up for the deficiencies of traditional evaluation methods,and provides a new reference for future research on the value evaluation of overseas M&A target companies.