Analysis On Selecting A Company To Merge And Purchase

To obtain the power of controlling stock is the core aim of merging and purchasing. The analyzed objects are strategic and material merging and purchasing happened in some year from 1993 to 2002 and the dealt with the companies merged and purchased in these objects were ones came into the market. The analyses are based on public information as well as share price in half a year and finance data in three years before and after merging and purchasing. In order to find the effect of merging and purchasing, payoff ability, growing ability, capital stock expanding ability and share price are checked at the minimum request, i.e. no original performance increasing of the companies. In this way those successful cases are selected. Then all of objects and successful cases are analyzed from the below factors: the regions that the companies merged and purchased lied in, region character, region connection of both sides of merging and purchasing, the industries that the companies belonged to, the manner of merging and purchasing, the size of the companies merged and purchased, the performance of the companies merged and purchased before, the former characters of controlling stock of the companies merged and purchased, the characters of controlling stock of the enterprises that merged and purchased on their own, etc. Some conclusions can be drawn after analyzing hereinbefore. The ultima standard for selecting is summarized and abstracted after more statistic proof. It is hoped to offer a reference idea for enterprises when they plan to merge and purchase a company came into the market.