1. What are the pricing methods for company acquisition?
The basic methods of enterprise merger and acquisition valuation are:
1, posting cash flow
This model was developed by Alfred of Northwest University. Rabaport was established to determine the highest acceptable discount rate (or cost of capital) by discounting cash flow. Rabaport believes that there are five important factors that determine the value of the target enterprise: sales volume and sales growth rate; Sales profit; New investment in fixed assets; New working capital; Cost of capital rate.
2. Asset value basis
Asset value-based method refers to the method of evaluating the value of the target company by estimating its assets. The key to determine the asset value of the target company is to choose the appropriate asset evaluation value standard. At present, there are three main international standards for asset appraisal:
(1) Book value refers to the asset value listed on the company's balance sheet. The assumption of book value is that the value of the enterprise is the sum of all investors who claim rights to the assets of the enterprise, including creditors and shareholders.
(2) Market value refers to the price acceptable to both buyers and sellers after bidding in the market. The market value of a company refers to its stock price. Investors or acquirers mainly pay attention to the market value of enterprises.
(3) liquidation value refers to the realizable value of the assets of the target enterprise after liquidation and sale, and the target enterprise no longer exists after merger and acquisition. Assuming that the enterprise no longer operates, all liquidation value will not consider the possible future income of the enterprise.
3. Price-earnings ratio model
The price-earnings ratio model method is a method to determine the value of the target enterprise according to the income and price-earnings ratio of the target enterprise, which can also be called income method. The meaning of P/E ratio is very rich, which may imply the future level of corporate stock returns, the returns that investors hope to get from stocks when investing in enterprises, the expected returns of corporate investment, and the length of time that corporate investment returns exceed investors' requirements.
2. What are the forms of M&A?
It is customary to use M & amp； together internationally, collectively referred to as M&; A, this is called merger and acquisition in our country. That is to say, M&A between enterprises is an act of obtaining the property rights of other legal persons in a certain economic way on the basis of equality, voluntariness and equal compensation, and it is a main form of enterprise capital management. Merger and acquisition of enterprises mainly includes three forms: company merger, asset acquisition and equity acquisition.
To sum up, the company acquired other companies in order to better develop its business and improve its market competitiveness. There are several methods to determine the company's acquisition pricing, including price-earnings ratio model, asset value model and cash flow method. Each method uses different calculation factors and starts from different angles. Correctly evaluating the value of the target company is an important part of company acquisition, which can save costs.