Research On The Investment Decision-making System Of Mergers And Acquisitions Of Enterprises On The Background Of Financial Crisis

The global financial crisis beginning in 2008 has brought about the great impacts on the enterprises. Such impacts have changed not only the normal operating activities of the enterprises but also the anticipation of themselves, environment and economic development in the future of the decision-makers of the enterprises; therefore, when the enterprises face whether to realize the scale expansion or deal with the crisis via the merger and investment, the operating mechanism of the merger and investment decision-making system of the enterprise has become the important factor of determining whether the merger decision-making is successful or not. Based on the above logics, the deep-going research on the merger and investment decision-making system of the enterprise on the background of financial crisis is made in the paper.It can be seen from the analysis of the five major merger waves having occurred in the world, the merger and investment of the enterprises is usually taken into account from some different perspectives such as improving the production scales of the enterprises, improving the coordinative effects of management and operation of the enterprises, realizing the multiple operation of the enterprises and meeting the motive of expansion of the manager's level. Therefore, the choice strategy of the target enterprises, relevant information collection of the target enterprises, searching and sifting of the target enterprises, how the target enterprises make decision by themselves and the choice paths of the target enterprises, etc. in the merger have become the important components of the merger decision making. However, it can be found from the relevant research on the decision-making theory, the uncertain conditions in the environment of financial crisis have become the important factors of influencing the decision-making. Therefore, the decision-making in the special environment more conform to the applicable scope of some decision-making methods such as rational decision-making, etc. viewed from some aspects such as property, principle, influencing factors and flow, etc. of the investment decision-making.The merger of an enterprise usually refers to the action that a company mergers an or more companies or two or more companies are combined into a company. The merger investment decision-making is to achieve the purpose of merger, and it is the process of analysis, judgment and decision in which, based on information and experience, some methods are taken according to the objective conditions and a satisfactory and scientific merger plan will be chosen from some alternative plans. The financial crisis will restrain the merger demand of the enterprises on the one hand; the cost of the enterprise expansion will also be gradually reduced with the deepening of the financial crisis, which will stimulate the merger demand of the enterprises. The characteristics of the merger investment decision-making on the background of financial crisis are represented that the environment of financial crisis causes the complexity of the merger investment decision-making by itself, long term of the merger investment decision-making process, sensitivity of the merger investment decision-making opportunity and risk of the merger investment decision-making. The merger investment decision-making system on the background of financial crisis shall be built according to the characteristics.Viewed from the perspective of building the merger investment decision-making system of the enterprises on the background of financial crisis, the merger investment decision-making is influenced by many factors. In the external environmental factors of the enterprises, some are macro-environmental factors, including hard environment and soft environment. The soft environment mainly refers to the economic environment, political and legal environment, social environment; the others of the external environmental factors are micro-environmental factors, including the impacts of industrial development, technical and market conditions. In the internal factors of the enterprises, the organizational structures of the enterprises, resource conditions and enterprise culture, etc. will influence the merger investment decision-making.Based on the theoretical perspective of the system, the deep-going analysis of the merger investment decision-making system of the enterprises on the background of financial crisis can be better made from some aspects such as subject, object, method and system, etc. Viewed from the decision-making subject, the merger investment decision-making shall b e completed by the high-level decision-makers of the enterprise, but the support of the middle-level administrators is needed in the decision-making and implementation; therefore, both the high-level decision-makers and the middle-level administrators shall be taken as the decision-making subjects. The decision-making objects mainly refer to some contents such as choice of target enterprises, merger and new comparison, financing and payment, etc. The decision-making method refers to the decision-making technique used by the enterprise in the decision-making. The decision-making system refers to the specification that all the decision-making subjects shall abide by and deal with activities according to the uniform procedure in the enterprise.Based on the above analysis contents, the operating mechanism of the merger investment decision-making system of the enterprise on the background of financial crisis can be dealt with. Viewed from the power mechanism, the merger decision-making and implementation of the enterprise will influence the property right relations in the enterprise, so the different impacts on the different interest subjects will be produced; therefore, the merger decision-making of the enterprise is the result of the action game of the different interest subjects in the enterprise guided by their own targets. Viewed from the information support mechanism, the enterprise shall base itself on determining the merger targets in the merger decision-making and carry out the objective and effective evaluation of the merger objects and itself and avoid the range beyond its own capacity; therefore, the effective external information support mechanism and internal information support mechanism shall be built. Viewed from the coordinating mechanism, the interest requests between the different subjects on the background of financial crisis will be quite different. The effective coordinating mechanism between the different subjects in the investment decision-making system will become the very important component of the operation of the decision-making system. Viewed from the implementation mechanism, the decision-making target, decision-making contents, decision-making implementation and decision-making evaluation are the process of the merger decision-making system and the components of the subject of the decision-making system. In order to realize the quantitative evaluation of the merger investment decision-making of the enterprises on the background of financial crisis, some relevant experts are invited to sift the alternative evaluation indexes to build the evaluation index system, choose the hierarchical analysis method as the determination method of weighing, use the method to determine the weighing of each index and further use the fuzzy mathematic method as the evaluation method of the merger decision-making system of the enterprise and build the merger investment evaluation model of the enterprise on the background of financial crisis.According to the actual operating process of merger and grouping of AP, in combination with the analysis of the industrial background and development of the company, with the analysis of some main problems existing in the development history, fund strength, competitive risks and enterprise development of the company, the merger motives of the company are dealt with from the perspectives of comparison of advantages and disadvantages and development opportunity, the merger strategy and anticipated targets of the company are concluded, the alternative enterprises and new investment modes are pertinently compared and judged to further analyze the technical system, regime system and organizational system, etc. in the merger and grouping of the company and carry out the quantitative evaluation.With the analysis, the following conclusion is made:First, the behavior, judgment, anticipation and impacts of the financial crisis factors of the high-level decision-makers and middle-level administrators constituting the subjects of the merger investment decision-making system of the enterprise will make the functions of the system changed and further influence the scientific level of decision-making.Second, the roles of the decision-making subjects in the decision-making objects, choice of the decision-making methods by the decision-making subjects, restriction of the decision-making system on the behavior of the decision-making subjects and limits of the decision-making objects on the decision-making methods, etc. constitute the internal structure of the merger investment decision-making system.Third, based on the completely different value judgment, in the same merger decision-making, the different interest subjects may make the completely different anticipations whose differences will influence the motives and purposes of the subjects and finally be represented in their behavior.Fourth, the effective communication and integrated coordination between the high-level decision-makers and middle-level administrators of the enterprise can help the different decision-making subjects continuously adjust their own opinions on the decision-making problems so as to assure the interests requests of all the decision-making subjects, to some extent and finally realize the decision-making. Only when the coordination between the different decision-making subjects and the smooth information communication channels are fully assured can the scientific and rational decision-making be assured.