The Strategy And Tactics Of Enterprise Merger And Acquisition

The main aim of the thesis is to research and analyze the strategy and tactics of mergers and acquisitions that are taking place in China today. Since 1980, China has changed dramatically with the planning economy transforming into newly marketing economy, the state-owned enterprises are experiencing further reforms. China's state-owned enterprises are facing great operating difficulties and market competitions that come from domestic and foreign companies, especially after China's entry to World Trade Organization (WTO). In order to meet these challenges, our state-owned enterprises have to establish enterprise group to increase production on a large scale and strengthen themselves in quality and improve the level of internal operation and administration. One of the effective ways is the use of merger and acquisition. This thesis is made up of three chapters. The first chapter of this thesis is to briefly introduce the concept of merger and acquisition, and the impact of merger and acquisition on China's market economic reform. It also briefly introduce the basic theories of merger and acquisition, the development of merger and acquisition in some developed countries, such as America and Japan, and it's development in China since 1980. It also introduces the problems that existed in China's merger and acquisition. The second chapter, which consists of sub-chapters, is to research the strategy of merger and acquisition. The first sub-chapter introduces enterprise's development strategy and the connection between enterprise's development strategy and merger and acquisition strategy. Their relationship should be that the strategy of merger and acquisition be based on enterprise's development strategy, that is, development strategy determines merger and acquisition strategy. The third chapter describes the tactics that an enterprise which will carry out the strategy should follow. In this chapter, you will understand that if an enterprise has decided to use merger and acquisition strategy, it should follow these steps. The first step is to investigate target company, and collect all information about the target company, including operation, finance, and human resources. The second step is to decide how to make the purchasing-plan and how to carry out the plan. And the next others are detailed steps to follow the tactics. The last sub-chapter is about how to manage and develop after merger and acquisition of the company, and it is very important to the company that carries out strategy of merger and acquisition.