A Case Of Unsuccessful M&A

As a main way for the enterprise to enlarge its scale and expend economically,the M&A has been adopted by more and more domestic companies,especially after China enter into WTO,all the domestic companies will face to the competition from the oversea companies,it require the domestic companies improve its competition by M&A. However,since the oversea theory of M&A is unfit for the domestic situation,and the people have no enough experience in this field,the risk of M&A becomes very high. After researched an unsuccessful Mergers and Acquisitions case,the writer of this thesis hope to find out the reason why it lost,so as to collect lessons and provide some suggestion for how to succeed in M&A.The writer researched the motive of company D's M&A at first,and then the strategy,but found both motive and strategy are not the reason that lead ed to the loss. After used the information theory,the writer found the asymmetric information is exist in M&A,and just because company D didn't change its relative bad information position made the M&A lost at last.Summarized the lessens of the unsuccessful M&A project,the writer provided following seven points of suggestion for how to deal with M&A successfully:1. clear M&A strategy,2. choose a proper target company,and try the best to know about it as more as possible,3. make a good plan for M&A,4. choose a correct way for M&A,5. establish an M&A committee with both experts in the company and outside,6. research the macroscopical policy carefully,7. effective conformity.