The Formulation Of Business M&A Strategies And Analysis Of Cases

As a common phenomenon of market economy, merger and acquisition(M&A) has made a great contribution to the wealth collection and the change of company organization structure. Also, it has accelerated the upgrade of industry structure and has played a major role in the world of today's finance and economics. M& A has become the focus of companies' policies.In china, as the development of economy, more and more enterprises involve in the action of M&A. But Many of the cases are failure. Mc Kinsey had researched 116 companies that involved in M&A and found that 60% is failure. One of the most important reasons is enterprises don't make effective M&A strategies according to their general strategies and Core Competence. This paper discusses the formulation of M&A strategies.First in this paper comes the brief introduction of M&A, and then analyses the motivation of M&A in three aspect: Economy, Administration and Strategy. Building on synthesizing the theories' of Industrial analysis and Competence, this paper gives an analytical framework of the M&A strategies, which is a general model of "Industrial Boom - Strategic Position - Core Competence". And it analyses how enterprises make effective M&A strategies according to this model. Finally, this paper introduces a case of M&A. It analyses the formulation of M&A strategies in SanJiu Enterprise Group from two aspects (1) upon the model of "Industrial Boom-Strategic Position-Core Competence".(2) upon the analysis of current situation and development trend of Medical Industry in China. And draws the conclusion that M&A is a compulsory development strategy of SanJiu Enterprise Group.Further more, this paper has collected several advises on M& A for the reference of our domestic enterprises' future operation.