Enterprise M & A Performance Analysis

Merger & Acquisition may avoid a slow progress of enterprises' development in the initial stage. From the point of microcosmic view, M&A can realize capital increment, optimize capital structure and promote rationalization of industrial structure; From the point of macroscopic view, M&A is beneficent to raise economic effects of the total society and make superior resource allocation. In addition, M&A may active original resource of slow efficiency.At first, this text introduces common theory of mergence simply. In economics conception, M&A is take-over of property resulting in the transfer of the assets ownership from the target companies to the acquiring one. Secondly from various angles of enterprises' achievements, it analyzes motivation of mergence. At the basis of this interpret, the text makes a thorough study of economic efficiency of three types of mergence. ( such as Horizontal Merger, Vertical Merger and Conglomerate Merger). In macro level, the rationality of M&A and its products lies in scale economics and also lies in reducing relevant costs & diversifying operation risk, etc. It sets forth good results of mergence to mechanism adjustment of production construction in detail. Thirdly comparing abnormal returns methodology to chief composition, I select four financial indexes as factors to construct a model of synthetic achievement of chief composition, and then based numerical value, make a comparison of achievement among three types. In the light of case analyses, the paper makes an empirical study on M&A performance of listed companies so as to evaluate the performance in an objective manner and to find out successful models in M&A . At last, because every thing has two aspects, we should be on guard against negative effect of mergence.