Applied research on the real option theory in enterprise value assessment of merger and acquisition

摘要

Target enterprise value evaluation is the key link to determine the success of mergers and acquisitions (M&A). The traditional enterprise evaluation methods, however, only consider the value of the realistic assets of the target company, ignore the implicit option value in M & A, may underestimate the value of the target enterprises. Real options theory is introduced into the value assessment of M&A can overcome the defects of the traditional methods. Firstly, this paper analyze a variety of options scientifically which are included in the M&A, followed by the establishment of real option pricing models in the M&A, and finally use case analysis method to explain how to use real options theory evaluate the value of the target enterprises in M&A.