Research On Target-choice Of Strategic Mergers And Acquisitions

With the rapid development of China's economy and the obvious acceleration of its connection with the global economy after China's entry into WTO, mergers and acquisitions, as a form of market competition among companies, plays a more and more important role in accelerating the congregate of social capital, bettering the structure of capital reserve, modulating industry organizations and industry structure and improving enterprises' competitive force, the demand of M&A inside and between industries is very fierce. In 2004, the numbers of M&A in China increased very rapidly which shows that the M&A market in China is entering a phase of high-speed development.However, the performance of domestic M&A is unsatisfactory. The percentage of real success is less than 10%. According to the experience of western countries, among the plentiful elements leading to failure, the unpropriate choice of M&A object is a very important one that is also the key determing success or failure. If the choice is wrong, the whole attempts will be valid. The current performance of domestic M&A is far from satisfactory, there are many problems in the practice of the choice of M&A objectTherefore, this thesis study how to select the proper M&A object. Revolving around this issue, it firstly regards 30 classical and successful M&A incidents as the research objects, finding out the common features of this cases. Then combining with the theoretical foundation, it put forward the priciples and methods of choosing proper object. In addition, AHP is introduced to decide which one is the most proper . Finally, a case of North-east Medicine Group is used to put the thoery into pratice.