The Theory And Evaluation Of Synergy Of Enterprise M&A

Enterprise merger and acquisition (M&A) is a result of the market economy. Since the end of the 19th century, there have already been five times merger tides in the whole world. At present, enterprise M&A as the transactions of property right of enterprise and behavior of enterprise reorganization, has already become the very important economic phenomenon in western developed countries. The enormous scale and long time are unprecedented, and appear irresistible trends. In our country, with the in-depth of the economic system, more and more persons accept selecting the superior and eliminating the inferior as the basic rule of market economy. Enterprise M&A will become the important form of the capital operating of the enterprise, and will play a very important role in economic development.The main purpose of enterprise M&A lies in obtaining synergy, by which the shareholders make their profits maximal. It is the basic theory for the modern enterprise M&A to give birth to synergy, and enterprise M&A is necessary if synergy is greater than zero. The amount of synergy determines the success or failure of enterprise M&A at the same time. However, because of lacking the guide of the theory in reality, it leads to the fact that people are to lack deep understanding and assurance in coordination with the inherent logic of synergy. Pursuing synergy one-sidedly causes the failure of the enterprise M&A finally. So, it has very important strategic meanings for the enterprises that participate in merger and acquisition to evaluate the synergy effectively.As the follow-up study subject of the National Natural Sciences Foundation "The Venture Discernment System for Enterprise M&A"(serial number: 70172050), this paper emphatically analyses and probes into the connotation, theories in correlation with M&A and evaluation of synergy based on the fact of enterprise M&A. During the process of argumentation, this paper uses synthetically the methods of the theoretical research combining real example and qualitative analysis combining quantitative analysis. First of all, this paper brings forward the connection of enterprise M&A in relation to synergy, and discusses the source and development of synergy. Then this paper analyses the relevant theories of synergy, and puts forward the evaluation method of the synergy. At last, this paper analyses the practice course that produces synergy in the process of enterprise M&A by real example.The main content of the full paper divides into four parts altogether: The first part summarizes enterprise M&A briefly. First of all, this chapter introduces the concept and type of enterprise M&A, and analyses its reason. Then the chapter putsforward the inner link of enterprise M&A and synergy and points out that synergy is the source that creates enterprise value.The second part mainly analyses the relevant theories in relation to synergy. This chapter is one of the important chapters of this paper. In this chapter, this paper puts forward the source and development of synergy at first, and discusses the connotation of synergy. Subsequently this paper classifies the synergy and analyses all kinds of function mechanism of synergy. At last, this paper especially discusses the relevant economic analysis of M&A on the basis of synergy. In this section, this paper respectively gives detailed analysis to the three important economic terms in the process of M&A.The third part mainly probes into the evaluation method of synergy. This chapter is one of the important chapters of this paper too. At first this chapter puts forward the meaning of evaluating synergy and points out that it is the key that determines the success or failure of enterprise M&A, and then analyses the main source of synergy. At last, based on the qualitative analysis of synergy this paper puts forward several evaluation models of synergy by using the method of quantitative analysis. The purpose is to offer consults for the enterprises, and to reduce the risk of M&A.The fourth part is the last demonstration part of th...