Research On Fit Between M&A Partners Based On Core Competence

In strategic M&A (Merger & Acquisition) decision-making, the principal mission, that the acquiring firm has to face with, is to hunt a satisfying target. More and more M&A transactions have taken place along with the development of economy. However, many failed because of an unfit target choice. Regarding this phenomenon, this dissertation chooses 'Fit between M&A Partners' as the topic, with the goal of providing the acquiring firms with some mentality and tool which are supposed to be helpful in the M&A practice.This dissertation uses qualitative method to conduct the analytical research. Based on the existing research products, this dissertation focuses on the fit between M&A partners using core competence theory and M&A theory. In this dissertation, core competence is regarded as a multi-layered system, with several competence essential factors on each layer. Integration foresight and target core competence are taken as estimation bases, as the result of cost-revenue analysis of M&A. Then an M&A fit model based on core competence is constructed and further discussion is launched to every competence layer and its competence essential factors. Subsequently a fit estimation procedure is proposed.This dissertation comprises seven chapters. In chapter one, firstly, the relevant background and significance are introduced; secondly, important conceptions are defined; thirdly, the research method and framework are confirmed. In chapter two, the dissertation reviews previous literature about core competence, M&A and M&A fit, and points out the fields that need to be researched. In chapter three, the dissertation takes core competence as the objective of M&A fit analysis. Here core competence is regarded as a three-layered system, with several competence essential factors on each layer. The construction of this system makes it possible to estimate the fit of core competence between both sides of M&A. In chapter four, the estimation bases are proposed. They are integration foresight and target core competence. These two bases come from the cost-revenue analysis of M&A and respectively play the key role in cost and revenue of M&A. In chapter five, a fit model based on core competence is constructed. And further discussion of each competence layer is launched. In chapter six, the estimation procedure is put forward. In chapter seven, the main views and the innovation points of the dissertation are concluded, and the insufficiencies and further research field are indicated.The innovations of this dissertation are listed as follows:Firstly, M&A fit between partners is discussed from core competence perspective, constituting the methodology foundation for the whole theoretical system. Core competence is the source of persistent competitive advantage. So the research from this perspective is supposed to serve the firms' benefit well.Secondly, core competence is discussed from system perspective. As the result, core competence is regarded as a multi-layerd system with competence factors on each layer. Consequently, the system can cover each aspect of firm's competence and the estimation of core competence becomes easier to conduct.