Study Of Mergers And Acquisitions Of Certain Financial Problems

This dissertation includes five chapters.Chapter one discusses the reasons why M&A takes place. At first it explains the concept of M&A and comments on the motives of M&A under the academic background of New Classic Theory, X-efficiency Theory, Agency Theory and Transaction Cost Economics. Then it analyzes from the point of finance and brings about the maximization of stockholders' wealth as the motive of M&A, which forms the base of the following research.Chapter two probes into the enterprise value assessment during M&A. It synthesizes and comparatively studies various methods of enterprise value assessment of listed companies and unlisted companies from home and abroad. And it regards DCF as the main method of enterprise value assessment during M&A.Chapter three studies the financing problem during M&A. Financing decision must depend on cost-profit analysis of M&A. It establishes a financial model carrying on cost analysis towards different kind of payments during M&A. This chapter also summarizes various financing methods and especially introduces into the innovation of debt financing. After comparing financing methods of M&A in China with that in America, it makes many suggestions on developing the financing methods of M&A in China.Chapter four discusses the financial risk. It analyzes the reasons why M&A cause financial risk and puts forward many measures that can be done to control and reduce financial risks of M&A.Chapter five touches on performance evaluation of M&A. It establishes a set of indexes to evaluate the performance of M&A. These indexes are considered to be useful in conducting the practice of M&A in China.