The Research On The Synergy Effect Of Chinese Private Enterprise In The International Merger And Acquisitions

With the hasten pace of globalization of Chinese economy and the trend of International Merger and acquisition (M&A) becoming international direct investment and enterprises internationalization, Chinese private enterprises are increasingly become the main stream of M&A. To our delight, some Chinese private enterprises are beginning to carry out International M&A to expand their strengthen.However, the low success rate of Chinese private enterprises International M&A intrigues us to question whether this method could produce synergy effect. Furthermore, we would like to solve such problems as how to get to know synergy effect, how to identify synergy effect, and how to seek for synergy effect. The essay is aimed to providing a set of ways to identify, calculate and manage synergy effect of Chinese private enterprises International M&A and theoretical guidance for Chinese private enterprises to realize synergy effect by International M&A.Firstly, by analyzing the related theory of International M&A and M&A synergy effect, the essay argues that M&A synergy effect theory is more applicable to Chinese private enterprises International M&A, compared with the current International M&A theory. Then using these theories, we analyze the origin and acquisition of Chinese private enterprises International M&A. Therefore, we come to the conclusion that they can get positive synergy effect in the sense of theory.Secondly, by comparison with the global five M&A waves and analyzing the current situation Chinese private enterprises faced, we conclude that Chinese private enterprises International M&A has its own special characteristics differing with that of the fifth global M&A wave. Then, in contrast to other operating and investment methods, we maintain that International M&A will become the significant means for Chinese private enterprises both in internationalization and foreign investment.Thirdly, the essay carried out empirical study on the issue. Surprisingly, the result of the empirical study is opposed to the theory prediction. Then we make deeply explorations on the reasons.Lastly, the essay put forward on some suggestions on how to get the synergy effect.