Motivation Analysis Of Mergers & Acquisitions Of Our Country's Enterprises

Nowadays Merger & Acquisition has become the most active enterprise activity in the world.A lot of enterprises have grown up rapidly through M&A.Either grew from small and medium-sized enterprise to the leading one of the trade, or the original trade tap entered other trades smoothly through M&A, or large-scale transnational enterprises can last its economic dominant position in the other countries again, and so on. Economic pattern of a country, area and even whole world has been changing at unprecedented speed under the push of large scale M&As .The M&A of our country's enterprise , beginning in the middle age of 1980s,has experienced an intact change course of form and essence during less than 20 years. The form of M&A developed from government-decided mixed M&A with the purpose of cover deficits and anti-poverty to economic benefits urged independent horizontal and vertical. Meanwhile, the overall scale of M&As has a growth of geometric progression too, expanding from about 2 billion yuan in 1989 to the enormous scale of over 30 billion dollars in 2003, And some M&A cases with huge scale appeared. Behind the rapid development of M&A in our country, there must be some strong motive forces that has been driving it certainly. This paper attempts to find out the motive forces .In chapter one.we defines some important concepts related with M&A. At first ,utilizing the relevant regulations in the laws of our country ,the paper distinguished three confusable concepts including merger, amalgamation, acquisition.And in this paper we will use "M&A" to represent the three concepts mentioned above in unison. Secondly ,in detail.we explain three major types of M&A including horizontal, vertical and mixed M&A as to distinguish them strictly. At last ,we makes brief explanation for the other classifications and paying methods of M&A.In chapter two, we introduce in detail the main academic schools of M&As theory in the west. Two reasons are mainly taken into account.Firstly, the M&A practice of the west has a long history and the relevant M&A theory has developed maturely. Secondly, the Chinese scholars' study on M&A is mostly on the basis of western3theories of M&A. We regards these theories of the west mentioned above as the main theoretical foundation too.In addition.we also makes brief introduction of the main achievement of scholars of our country.Because there is great difference in political and economic system and economy developing level.between the west and our country, it is obviously difficult to totally imitate the western theories for explaining the M&A practice of our country . In order to propose the effective explanation of the enterprise motivation for M&A in our country, we must observe the traits of M&A in our country . The M&A developing course of China and the United States are compared in chapter three of this paper, and internal & external environment of our country's enterprises are analysed in chapter four. Under such an environmental background, we summarize several main characteristics of M&A in our country and make abundant preparation for putting forward formally the reasons for M&A in the following chapter.Here after the abundant analysis of the previous chapters, we put forward the motivations of mainstream of M&As of our country's enterprises in chapter five.They are "obtain rare resources" and "pursuit to the large-scale producting effecivity" . The first one can be subdivided into "widen the credit extending channel", "obtain key technology" and "enter and monopolized resource trades". The second one can be explained from small and medium-sized enterprise.In addition we propose three motivations of not mainstream including "ensure and expand the control income", "obtain speculative income by utilizing illusive reorgnization" and "Utilize preferential policies".