Enterprise M & A Performance Analysis

Merger and Acquisition (M&A) is an efficient method for enterprise external growth, reorganizing and adjusting the industry structure, or the redistribution of the production resources. However, not all enterprise M&A can realize the above-mentioned functions; it's also a two-edge sword. The discussion on whether the performance of M&A is good or not has never stopped all over the world, different economist holds different ideas. Compared with the western M&A actions, the enterprise M&A in China has its own special character. Therefore, It will be much helpful for the M&A development in china to appraise the present enterprise M&A performance and analyze the main influencing factors under the present condition.The relative contents and structure arrangement of this paper are as following:On the basis of introducing the definition and type of M&A, the first chapter mainly analyzes the motivation and risks of M&A. It point out that because of our special economy institution background, compared with the western mature M&A activities, the M&A motivation of our enterprises are in a much lower grade, it is far from the regulatory and orderly trend it should be. Also the enterprise M&A is facing many risks, not all M&A will be successful, so the M&A performance appraisement is very important. And after reviewing the research results of western and Chinese researchers about the M&A performance, we come to the study focus of this paper.The second chapter mainly analyzes the key factors influencing the M&A performance: After studying the influences of the M&A procedures on the performance with the game theory. We find that the M&A experience of Chinese enterprises is in close relation with our special institution environment of economy transition. It is such institution environment leads to the relative action of each side under the M&A, which further decides the enterprise M&A performance of China. T hat is, the e ntrepreneur, enterprise institution and government behavior are restraining the realization of positive performance of our enterprise M&A.In the third chapter, we review the existing M&A performance appraising methods and standards, on the basis of which, we select the applicable appraising system of this paper. Then we take those list companies that had M&A in 1999 as sample cases, and study the changing tendency of our selecting financial variables from 1998 to 2002.Through the horizontal and longitudinal tendency c ompanson, we can judge whether the M&A can improve the profit ability of the sample enterprise. Finally, according to the result, we point out the features of M&A in 1999, and explain the reason why the performance of M&A is not as good as expected, from which we can summarize the feasible strategies for the enterprise M&A development in China.