First, the net asset value evaluation method
The evaluation methods of net asset value mainly include book value method, replacement cost method and current market price method, and only the first two methods are introduced here.
1. book value method. The balance sheet of a company in each fiscal year can best reflect the value of the company at a certain point in time, which reveals the resources held by the enterprise, the debts undertaken by the enterprise and the rights and interests owned by the owners in the enterprise. The net value of the company's assets and liabilities is the book value of the company. However, if we want to evaluate the true value of the target company, we must also make necessary adjustments to the items in the balance sheet. For example, in the adjustment of asset items, we should pay attention to the possible bad debt loss of the company's accounts receivable, the exchange loss of the company's foreign trade business, whether the market value of the company's securities is lower than the book value, and whether the depreciation method of fixed assets, especially intangible assets, is reasonable. The evaluation of patent right, trademark right and goodwill is very flexible. When adjusting the items of liabilities, it is necessary to check whether there are unrecorded liabilities, such as employee pensions and accrued expenses, and pay attention to whether there are guaranteed or unapproved liabilities and taxes. After evaluating the assets and liabilities of the target company, both parties can negotiate these projects one by one and get the company value acceptable to both parties.
2. Current market price method. The current market method, also known as the market method, is an evaluation method that selects one or several companies similar to the evaluation object as reference objects or price standards, analyzes and compares the trading conditions of the reference objects, makes comparative adjustments, and determines the value of the evaluated companies. The theoretical basis of current market price method is the principle of market substitution. In asset trading, any buyer will choose assets with great utility and low price. In the evaluation process of current market price method, firstly, the evaluation object and evaluation index are defined, then the information of reference object is collected, and the reference object is determined by analyzing the information. Finally, compare the difference between the reference object and the appraised object and the price difference reflected by the difference, and get the value of the appraised object after adjustment. The premise of applying the current market price method is a fully developed and active market. Only when such a market exists can we select enough reference objects from the market for comparison, analysis and pricing. China is currently strengthening the construction of the capital market. With the continuous development of the capital market, the current market price method will be more widely used in value evaluation.
Second, the evaluation method of going concern value
1. Income present value method. It is an evaluation method to discount the expected future income of the company to the present value of the evaluation base date with an appropriate discount rate, and then determine the value of the company. The principle of the present value method of income is that the acquirer buys the target company because the target company can bring benefits to itself. The higher the company's income, the higher the purchase price. Therefore, it is a scientific and reasonable method to determine the value of a company according to the income level it can bring. This method involves the evaluation of the life expectancy of the target company. Life expectancy refers to the period from the evaluation benchmark date to the company's loss of profitability. Companies have a life cycle. When evaluating the company's value with the present value of income method, we should first judge the company's economic life. If the estimated economic life is too long, the company value will be overestimated, and vice versa. In western countries, life expectancy is generally limited to 5 years to 10 years.
2. Price-earnings ratio method. The price-earnings ratio method is a method to determine the value of the target company according to its income and price-earnings ratio. The process of applying the price-earnings ratio method to evaluate the company's value is as follows.
(1) View and adjust the recent profit performance of the target company. For example, when looking at the company's recent income statement, we should consider whether the accounting policies followed by these accounts are consistent and in line with national regulations, and adjust the profits announced by the company when necessary.
(2) Select and calculate the company's valuation income indicators. It is more appropriate to take the average after-tax profit of the company in the past three years as the valuation income index. In fact, the valuation of the company should also pay more attention to its income after the merger. If the acquired company has a strong advantage in management and the target company can obtain the same rate of return as the acquired company under effective management, it will be more instructive to calculate the after-tax profit of the target company after merger and acquisition as the valuation income index.
(3) Select the standard price-earnings ratio. There are usually several standard P/E ratios to choose from: the P/E ratio of the target company M&A, the P/E ratio of companies comparable to the target company, and the average market profit of the target company's industry. When choosing, we must ensure comparability in terms of risk and growth. The standard P/E ratio should meet the requirements of post-merger risk and growth, not just historical data. At the same time, in practical application, the above standard P/E ratio should be adjusted according to the expected situation of the target company.
(4) Calculate the company value. Company value is the product of valuation income index and standard P/E ratio.
Third, collaborative value assessment methods
The evaluation method of company synergy value is mainly income present value method. Different from evaluating the value of going concern, it is necessary to increase the benefits generated by synergy when estimating the expected benefits, that is, to calculate and interpret the new benefits and cost savings item by item. Usually, after the target company is merged, due to the cooperative relationship, it will grow abnormally at the initial stage, and then it will enter a mature stage and grow steadily at a low speed.
Fourth, the strategic value assessment method
There is no fixed evaluation method for strategic value. When the strategic purpose of the acquired company is different, the value evaluation methods of the target company are also different. However, one thing is the same, that is, if the acquiring company does not conduct mergers and acquisitions, the cost of achieving strategic goals through other means is the standard to measure the strategic value of the target company. For example, in order to acquire the market occupied by the target company, the strategic value of the target company is mainly the price paid by the acquiring company to occupy the market itself. For example, the acquisition company wants to acquire some scarce resources (proprietary technology, status of listed companies, etc.). ) owned by the target company, then the strategic value of the target company is the cost of the acquisition company to abandon the merger and develop scarce resources on its own.