Research On The Search Of Target Firm In Merger And Acquisition Of China

Merger & Acquisition (M & A) is the product of development of market economic and is one of the important ways of enterprises development which plays a decisive role in the growth and development of modern enterprises. At present, China's economy is in transition in the context of globalization in emerging market economies. It is through merger and acquisition to complete the transition to a market economy, through merger and acquisition to emerging market economies to mature market economy, but also through merger and acquisition in the future of global competition to take a important place. However, of all the merger and acquisition activity in China fully achieve the objectives of deals rarely. The reasons for the failure are generally too much government intervention, the search of improper acquisition targets, overestimated revenues and the ineffective integration after the merger. The search of target firms is the first step of all the M & A activities and is the key to M & A. The right target is equivalent to half of the success and this is no exception in M & A. How to search the right target is critical first step and this has become the focus of this paper.This paper makes the overall review of home and abroad on the search of target firm theories and methods and make the analysis of previous research deficiencies. Based on the above analysis, this paper focuses on the process analysis of M & A. Therefore the main contents of this paper are as follows: the theoretical analysis of the information collected of target firms in the M & A, reaware of the objectives of the information gathering of target firms, put forward in the process of self-search and order arrangements for division of staff ;then based on the optimal search method carried out a detailed analysis of the search model of the target firms and build on the cost-benefit and the number of searches in order to achieve the search to the most suitable for the target firms to ensure the success of the purpose of merger and acquisition; Finally, took Tsinghua Tongfang Co., Ltd. as an example to specific that the actual M & A target firm in the search process.In research of the search of target firms in M & A has important theoretical and practical value. Through searching the right target firms can improve the success rate of merger and acquisition. And it is expected to be able to carry out some reference and guidance to merger and acquisition in China.