Research On The SHCW M&A Project

Entering the 21st century, the world sees a new surge of enterprise mergers and acquisitions (M&A). Viewed from the cases about rapid growth of foreign firms, quite a few companies implement M&A with target companies through capital operation, which helps to spur their fast growing. Businesses are increasingly aware that capital operation serves as an important means for future development of enterprises. There has emerged a realistic issue facing probably all companies related to their development pattern: whether a company should merely rely on its own accumulations (including capital, technology and talent, etc.) or take the advantage of capital operation in pursuit of fast growing.Actually, the fast-growing pattern has already been accepted by more and more domestic companies. Compared to the enterprise-alliance, companies' coming into the market and technology transfer, the M&A is an operation means which is more complex and frequent.Under such social practices and theoretical circumstances, this article makes a thorough and systemic research about the M&A activities. Firstly, based on the retrospection and analysis of the history and status of the M&A development globally, the dissertation synthesizes the investigations in the domestic and foreign M&A theories, and discusses about the M&A motives on the both sides of the mergees respectively and then indicates that M&A has already become the basilic resort to speed the companies' growing. Just on the theoretical fulcrum above, it concludes that there is no settled patterns as to M&A which should however be arranged according to the Law of Utility-Maximization, after the existing M&A manners of the domestic firms have been researched deeply combined with plenty of cases. Furthermore, taking it for example that the design of the M&A project of Shenzhen-listed SHCW, the dissertation,through analyzing the motives, manners and financing resources, obtains the optimized scheme subject to the facts of the object company. Eventually, taking the risk of M&A into consideration, the dissertation holds that M&A is not merely a sort of so-called omnipotent remedy, and in particular, its effect also lies on the amalgamation management after the implement.