Analysis of Business Valuation–A Study of WPG Merger Strategy

• Main Authors: Kun Long Lu, 呂坤龍
• Other Authors: C. H. Chan
• Format: Others
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/11896104816806284806

碩士 === 長庚大學 === 管理學院碩士學位學程在職專班經營管理組 === 99 === Enterprises achieve external growth through merger acquisitions. But how does both side of the merge company justify their evaluation on the true value of the other company? To the enterprise owners, how to truly understand the real value of an enterprise through by study the result evaluation becomes crucial in decision making. Also, it can help to upgrade enterprise’s true value and it’s bargaining power during an acquisition. This result mainly focus on discussing enterprises’ justify value. Through study the case of electronic component channels WPI group & SAC group, merging to form a new stock holding company in 2005. We’ll apply to historical records of similar electronic component’s channel merges examples to try to develop a model to justify the value of enterprises. Then we’ll apply the model to the market value at the time the merger took place, to see if the value tag given to the enterprise if justifiable or not. In the field of electronic component channels market, price to book value (PB) (uses numbers obtain from financial records), it is commonly used between both parties in a merge as a mutual communication tool. So in this research, we’ll use WPG holding merger acquisition as target subject the evaluation, try to define a justify value of each company it acquired. The result from this study shows that in the case of WPG holding merges, PB value indeed can be a reference in deciding the true value of an enterprise