The angle of selection of the evalu

The angle of selection of the evaluation method. The choice of valuation method is an important link in the merger process, as the source of goodwill is a valuation that is higher than the book value of the target company's net assets. Liu Wutang (2004) proposed that the current valuation methods commonly selected at home and abroad are the cost method, the market method, and the income method. Yue Gongxia and Li Tingwei (2011) investigated the merger activity of the information technology industry and found that asset-based methods and income methods are often used to evaluate M & A in the industry, but its core value is Of the intangible resources such as brand awareness that are primarily reflected, asset-based valuation methods often underestimate the true value of a company, so the income method is the more appropriate choice for asset valuation. is. However, the choice of income law has led to the formation of high goodwill. Song Yan (2017) surveyed many M & A cases in the film and television industry and analyzed that the choice of income method for valuing value forms a high premium.