Research On Military Enterprise Value Evaluation Based On Synergistic Effect Of Merger And Acquisition

M&A is one of the effective ways to adjust the economic structure framework system and achieve sustainable development.The main purpose of M&A is to pursue the synergy effect of M&A,and achieve "1+1>2" through M&A,that is,the overall value of the enterprise after M&A is greater than the combination of enterprise values of both parties before M&A.At present,under the international environment of the game of great powers,national defense strength has become an indispensable driving force for the sustainable development of China’s economy.The construction of national defense informatization and the development of military civilian integration have prompted more and more military enterprises to conduct mergers and acquisitions.In the process of enterprise M&A,whether it is vertical,horizontal or diversified integration,the synergies generated will have a greater impact on the overall value of military enterprises.Therefore,scientific measurement of synergies has important practical significance in military enterprise M&A.After sorting out the theories and research achievements of domestic and foreign scholars related to synergy,it is found that there is less research on the combination of synergy and military enterprise value evaluation in theory and practice at the current stage.For this reason,this paper analyzes that the value of military enterprises mainly has the characteristics of macro policy sensitivity,stable market share and intangible assets determining the business situation,combs out the feasibility of three enterprise value evaluation models to evaluate the value of military enterprises,and combines the characteristics of enterprise mergers and acquisitions and synergies,thinks that DCF model is the most suitable method to evaluate the value of military enterprise mergers and acquisitions.Then,taking the classification of synergy as the foothold,the paper expounds the definition and implementation of each synergy and its impact on the free cash flow of military enterprises,and on this basis,analyzes the importance of various synergy effects in enterprise mergers and acquisitions,and believes that business synergy effects and other synergy effects should be mainly considered in the evaluation of the value of military enterprise mergers and acquisitions,providing a theoretical basis for case studies.Finally,taking the acquisition of Hengda Microwave by Leike Defence as an example,the impact of synergy on the free cash flow of Hengda Microwave is predicted through case analysis.The above model was used to evaluate the selected case companies,and the process of model application and the results of valuation were analyzed to verify the effectiveness of the evaluation model.Based on this case study,the following conclusions are drawn:(1)DCF model is more suitable for the evaluation of M&A value of military enterprises.The value of military enterprises has the characteristics of sensitive macro policies,stable market share and attention to intangible assets.Based on the analysis of the enterprise value evaluation model based on the characteristics of military enterprises,it is known that when dealing with the value evaluation of military enterprises’ mergers and acquisitions,the applicability of each evaluation model is quite different.It is believed that DCF evaluation model is more suitable for the value evaluation of military enterprises’ mergers and acquisitions.(2)The enterprise value evaluation considering synergy effect is more suitable for military enterprise M&A.Put forward the evaluation idea of taking the classification of synergy as the foothold,combed the definitions and manifestations of various synergy effects,and fully reflected the synergy effects in the enterprise value evaluation according to the impact of each synergy effect on the enterprise’s free cash flow.Taking the case of the acquisition of Hengda Microwave by Leike Defence as an example,the evaluation result gained is 7.53% higher than that of the evaluation agency.The analysis shows that the evaluation result based on synergy can more fairly reflect the enterprise value in the process of enterprise merger and acquisition,and the evaluation model considering synergy is more suitable for the enterprise value evaluation in the process of military enterprise merger and acquisition.The main innovative work of this paper is as follows:(1)Based on the perspective of synergy,this paper studies the problem of enterprise value evaluation,systematically analyzes the value evaluation process of military enterprises under the synergy,clarifies the definition and specific manifestations of various synergies,establishes the value evaluation idea of military enterprises based on synergy,and provides a new direction for the relevant M&A market.(2)After sorting out and analyzing the current enterprise value evaluation model,this paper clarifies the characteristics of DCF evaluation model,puts forward the method of using DCF evaluation model to evaluate the value of military enterprises based on synergy,and comprehensively considers the characteristics of synergy and military enterprise value.