Research On The Evaluation Of The Core Competitiveness Of M&A' Process

With the rapid process of economic globalization, corporate mergers and acquisitions have become a short-cut way to achieve the rapid expansion in a short time. However,too many facts tell us that M&A is an economic activity of high risks,the entire operation could be leaded to the failure with a little careless. This paper is beginning with the main reasons of the current M&A failure,explores their respective features and deep-rooted relations of risks of the mergers and acquisitions and the core competitiveness,gives policy recommendations to guard against the risks and studies the quantitative analysis of the M&A risks and the core competitiveness.First of all,the article reviews the history of the M&A and risk characteristics of the M&A,suggests that controlling the risk of M&A should be done from the perspective of core competence,then reveals the practical significance of the combined research between the M&A risks and the core competitiveness. Then,the article reviews theory of the M&A and the core competence,preparing the theoretical groundwork for research. Based on the unique understanding of the risks of the M&A,the paper divides the M&A into M&A target selection stage,trade negotiations stage,the integration stage,And discusses the factors which affect the core competitiveness and risks of the three-stage,gives policy proposals of controlling the risks of M&A. On this basis,target-selection phase of the negotiations and the transaction phase of the target The article discusses the quantitative research methods of the risk of M&A,To M & A target for the integration phase,the analysis of the enterprise's core competitiveness of the research methods.The article sets up M&A risk assessment model and the enterprise's core competitiveness of the evaluation model. Evaluation model puts forward measurement indicators and measurement methods from the risk of target selection and negotiation transaction,as well as eight factors. Enterprise's core competitiveness model adopt fuzzy evaluation method to evaluate. Which had built evaluation methods,mainly from direct and indirect competition and six factors to examine. Practice has proved this method is reasonable.Finally,through analyze the case from the merger of Shanghai Automotive and Nanjing Automobile or Delong which conduct a series of merger actions,we had validated the significance of M&A risk model and the core competitiveness of the M&A model in enterprise merge.