The Application Of Real Option Method In The Valuation Of Mergers And Acquisitions Of Logistics Enterprises

In the country’s 14 th Five-Year Plan for economic and social development,the state clearly proposes to focus on the construction of logistics industry to ensure the industrial upgrading of domestic manufacturing industry.Promoted by favorable policies,the logistics industry,as a weighted sector in the A-share market,has adopted mergers and acquisitions to widen its moat in order to maintain its competitive advantage in the industry.However,in the increasingly frequent trend of mergers and acquisitions of logistics companies,the overall success rate of mergers and acquisitions is not high.This is mainly because traditional valuation methods do not take into account the value of options that companies have in uncertain situations.The success of corporate M&A strategies is even related to the rise and fall of enterprises.Therefore,it is of great significance to find a more accurate valuation method for logistics enterprise mergers and acquisitions for China’s logistics enterprises to achieve long-term development through mergers and acquisitions.To this end,according to the valuation characteristics of modern logistics enterprises,this paper introduces the real option method to solve the valuation problem in the merger and acquisition of logistics enterprises.First of all,this paper summarizes the research status of real options and the valuation of logistics enterprises,and provides a theoretical basis for the research in the following article.Secondly,it describes the current situation and existing problems of M&A valuation in China’s logistics industry,and combines the characteristics of modern logistics enterprises to summarize the particularity of the M&A valuation of modern logistics enterprises.At the same time,according to the particularity of modern logistics enterprises,the applicability of real options in the valuation of logistics enterprises is clarified,which lays a foundation for the feasibility of conducting case studies;Then,taking Company S’s acquisition of Company J as an example,the real option method was applied to Company J’s value assessment.Finally,this paper compares the calculated enterprise value with the actual transaction price of the case and the market value at the valuation basis date,illustrating the feasibility of introducing the real option method in the valuation of logistics companies.This paper analyzes the applicability of the real option method in the valuation of logistics enterprise mergers and acquisitions in combination with specific company cases,which not only enriches the literature on the application of the real option method in the logistics industry,but also provides a new perspective and thinking mode for the valuation of logistics enterprise mergers and acquisitions,and provides guidance for decision makers to make accurate decisions,which is of great practical significance.