Corporate Mergers And Acquisitions, Strategic Analysis And Decision-making

Since the latter half of 1990s, global enterprise Merger and Acquisition (M&A) has experienced an unprecedented climax. M&A, as the essential enterprise strategic developing mechanics, attracts more and more attention from the business and academic sectors.From the point of view of an enterprise, M&A is an unordinary event in its life, and demands a complicated planning and executive process. The main idea of this dissertation is that a Chinese enterprise, which is planning to undertake a M&A transaction, should make profound and comprehensive feasibility studies into the transaction, to try to avoid risks hidden in it and to decide on the proper timing and strategies.Recent years, there have been a large number of researches on M&A from diversified perspectives. However, most of them are macro-oriented, and there is a lack in the systematic analysis which, from the angle of domestic enterprises, discusses how to base the final decisions on an all-around feasibility study. Therefore, the dissertation focuses mainly on the decision making process of a Chinese enterprise on the buyer side, analyzing how to determine whether an M&A transaction is feasible or not from the strategic, financial, legal and taxation perspectives, and as a conclusion, offers advice on effective M&A approaches.The dissertation is made up of three parts. The first part, or the first chapter, serves as groundwork, introducing the concept, classifications and motivations of M&A. The second part, which consists of the second, the third and the forth chapters, explains how to make strategic, financial, legal and taxation due diligence studies in an M&A transaction, and therefore, how these studies influence the final decisions. This is the core part of the dissertation. The last part, i.e. the last chapter, concludes with analysis on potential risks in a domestic M&A transaction, and relevant suggestions to avoid these risks and to ensure successful outcomes.