Real Option and Strategy: Valuation of Internet Companies MA

摘要

This paper studies the valuation of Internet companies M&A. There are some defects of the traditional methods of enterprise evaluation. The paper points out that the Internet companies have characteristics of investment flexibility and income volatility, and there is the value of real option. At the same time, the target enterprises are with " investment value " characteristic, so the strategic decision of main M&A enterprise will affect its value. Therefore, the value of target enterprise of internet companies is sum of NPV, the value of real option and the strategic value.