Analysis Of Synergetic Effect In Selecting Target

With the entrance of WTO, China has become a part of international economy. Many foreign enterprises set up their business, which brought new competition for own national industry. In order to gain synergy, many enterprises selected M&A as a method of rapid capital cumulating. On the other hand, among all the case of M&A, the rate of success was under percent 30%. In this article, the author states that the synergy trap is existent and set up a model of analytic hierarchy process( AHP) under the standard of maximization of synergy.There are six parts in the article. The first part is the preface. It includes the method and the significance of the research. In the second part, it states that the fundamental aim of M&A is to gain synergy. At the same time, it brings out the existence of the "synergy trap". In the third part, the author analyzes the three sources of synergy: management synergy, operation synergy and finance synergy. More specific, synergy comes from the transference of management ability, full use of product components and the improvement of the capital-distribution rate. The fourth part states that some prerequisites are required, such as the difference of "management density", the potentiality of scale economy, the existence of supplier and demander of fund and so on. The fifth part is the focal point. The innovation of the research is included in this part. Firstly, it reviews the common four evaluating methods and two ways to evaluating objective enterprises' synergy. Those methods have a few deficiencies, which includes the difficulty to determine the unknown factor and the difficulty to integrate the quality factor and quantity factor. In the later part, there wasan AHP model was set up adhering to the analysis in the third part and the fourth part. To maximize the synergy is the main objection of the model. The model was expounded by a simple example. The main merit of the model is that it can integrate the qualitative factors and quantitative factors together well. The sixth part analyzes the no-synergy and the negative synergy of China M&A, and gave some advice. The article will be useful in theory and in practice.