Group 1 - The core viewpoint of the discussions at the closed-door seminar "M&A Breakdown: Investment and Exit Games in the Era of Stock" highlights a shift in focus from due diligence and transaction design to litigation and dispute resolution in the M&A landscape since 2018 [1] - The investment in distressed asset funds has been a notable area of growth since 2018, with successful outcomes in property rights investment, debt investment, and bankruptcy restructuring [1] - Recent M&A activities have predominantly concentrated in sectors such as semiconductors, biomedicine, artificial intelligence, and new energy vehicles, which present valuation complexities due to their reliance on patents and R&D outcomes without immediate revenue generation [1] Group 2 - Traditional market methods like PE, PB, and PS are less applicable for early-stage valuations of companies in these sectors, leading to the adoption of alternative metrics such as equity value to GMV and equity value to R&D expenses [2] - For biomedicine companies, valuation methods must adapt to different R&D stages, utilizing techniques like binomial tree models or Monte Carlo simulations to meet listing requirements [2] - Cross-border M&A transactions, particularly involving A+H share companies with state-owned backgrounds, face significant operational challenges due to the need for triple regulatory approvals, highlighting the critical role of valuation firms in navigating these complexities [2]

Group 1 - The core viewpoint of the article highlights the challenges and opportunities in the M&A market, particularly focusing on sectors like semiconductors, biomedicine, artificial intelligence, and new energy vehicles, which have seen increased activity in recent years [1][2] - The complexity of valuation in these sectors is emphasized, as many companies possess significant patents and intangible assets but have not yet generated substantial revenue or profits, making traditional valuation methods less applicable [1] - Alternative valuation methods such as equity value to GMV ratio and equity value to R&D expenses ratio are suggested for better assessment in early-stage companies [1] Group 2 - The article discusses the operational difficulties in cross-border M&A, particularly for A+H share listed companies with state-owned backgrounds, which require multiple layers of regulatory approval [2] - It notes the differing regulatory logic among various authorities, with state-owned asset protection being a primary concern, leading to the necessity of using multiple valuation methods for cross-verification [2] - The article also points out the cautious approach of the Hong Kong market towards the income method, which requires additional documentation and can complicate the approval process [2]