Strategy Driven M&A Of Enterprises

With constantly strengthening of the trend of economic globalization, the internationalcompetition is fierce day by day, and the large-scale enterprises are playing more and moreimportant roles on the international economic stage. In the growth course of the large-scaleenterprises, the activities of enterprise merger and acquisition (M&A) play a critical role.The growth histories of the well-known large-scale enterprises in the world, we can say, areall M&A histories. The effective implementation of M&A, being the most complicated andthe most general operation form of the outside trade strategy for enterprises growth, has verypositive meaning to the enterprises' fast growing up and gaining continual competitionadvantages. The strategy driven M&A are mainly to meet the need of enterprises' own development.It is a comprehensive recombination way involving a lot of factors, such as capital, markettechnology and management and so on, so it is "a kind of strategy of enterprise development"in fact. The study on the enterprise strategy is still very weak at present in our country, sothere are generally blindness and nearsightedness in a large amount of M&A cases because oflacking strategic guidance. There are the problems waited to be researched and solvedurgently that how to combine the strategic management with the M&A activities and how tomake M&A really become the favorable weapon of competition and development ofenterprises. In this thesis, the complexity of strategic M&A is comprehensively considered.Beginning with the analyses of the relationship of M&A and strategy and the functions ofM&A in the enterprise strategy, the problems, including the new trend of M&A development,the reasons and the decision of M&A, M&A and integration, M&A risks and so on, areanalyzed thoroughly, and two kinds of strategy M&A based on industry organization and oncore competencies are also researched. The practical activities of M&A of domesticenterprises are analyzed and discussed, and some specific suggestions are put forward. Chapter one, which is the part of introduction, explains the research background andpurpose, and briefly reviews the current situation of M&A and strategic management researchin home and aboard. It also clearly proposes the research approach and the ways of thinking,and put forward some possible innovations. Chapter two mainly discusses the emergence and development of strategy driven M&A,defines its intension and characteristics, and analyses the influence and the current situation ofstrategy driven M&A in our country. At first, the background and influence, the special reasonII Strategy driven M&A of Enterprisesand the historic significance of horizontal M&A, vertical M&A, multiple M&A, and financialM&A are reviewed and summarized. On this basis, it is proposed that the fifth M&A tide,beginning in 1990s, has demonstrated the characteristics of bigger scale, more amount ofcapital, wider range, and that the basic reason of the fifth M&A tide is obviously strategydriven, and the goal presents strong strategic intension. Secondly, this chapter has summarizedthe essential features of strategy M&A: using the enterprise development strategy as basis;looking for strategic advantages as the purpose; emphasizing on the improvement of theenterprise core competencies; paying attention to advantages supplement between themerging enterprises; internationalization and globalization of the merging range. At last, thischapter reviews the M&A history of enterprises and analyzed the urgency of strategy M&A ofenterprises in our country. Chapter three mainly discussed the motives of strategy M&A. At first, it reviews theexisting and representative theories on M&A motives. These theories include: control powerincreasing efficiency hypothesis; efficiency theory; information theory; agency's cost theory;managers' expanding motive theory; free cash flow hypothesis; market strength theory;...