M & A Financial Research

From 1987, M&A had attracted people's attention. In our country, after 1980, several M&A had taken place. More than 20,000 companies were bought by the form of M&A. And now, M&A in china are in the ascendant. But behind booming of M&A, we should not neglect the negative effect of M&A. For most of the M&A around the world were not successful. In our country, several companies confronted with severe situation after M&A. So this paper attempts to thoroughly make a theoretical review to the financial problem related to M&A and analyze several controversial topics such as financial evaluation of the company, financing of M&A and financial conformity of M&A so as to contribute to providing useful reference to china's companies and enhancing the efficiency of M&A.The paper consists of a preface and five chapters. In the first part of the paper, the author firstly analyzes the essence of M&A; then recollects and makes comments ontheories about the motives of M&A; finally introduces the process of M&A. From the second part of the paper, the author discusses the related financial problem of M&A according to the process of M&A. In the preparing stage, the company needs to do financial appraisal. First, the company needs to judge the strategy of M&A after analyzing competition strategy of the company. Then the company should choose the objective from those companies which fit for the Condition of the company. After this, the company needs to appraise the value of the objective, the author concludes the methord of appraisal and put forwards four modes including market mode, asset mode, discount mode and option mode. In the second stage, the company needs to make a deliberate consideration of the payment of M&A. A lot of factors should be taken into account. Only after the payment of M&A is decided , the company can design different financial plan according to the payment. In the third stage, the company needs to attain the strategy of M&A by the way of reforming. The author discusses the basic principle and detailed implement. M&A is the most important way to realize the reorganization and reconstruction of company. It's also an important way to deepen the reform of our state owned company. The research of financial theory and practice of M&A that fits for the situation of our country has significant meaning. So, in the last part of the paper, the author discusses the actuality and reason of Chinese company's financial problem of M&A and puts forward the countermeasure basing on the macroscopic and the microscopic levels.The financial problem of M&A has plentiful contents and this research can't deal with every problem. In this paper, the author tries to make a deep discussion on the related financial problem among the most pivotal stage of M&A, in order to play a active role in china's booming M&A. the aim of the paper is to urge the M&A of Chinese company to develop more healthy and more quickly.