Investment Banking Mergers And Acquisitions Business

In recent years, with the increase of the size and scope of the merger and acquisition (M&A) business in our country, M&A becomes the hotspot in the academic research. There have been a lot of research productions in the country. However, from the point of view of investment banks, it seems that the research of the motivation and operation of investment banks developing this kind of business is weakness. This paper will take up with filling up this blank.The paper is composed of four parts. The first part analyzes the rational logic of investment banks entering M&A of companies, which means that this business meets the needs of both companies and investment banks. The second part explains the functions of pricing and financing of investment banks during the course of M&A. Since investment banks tend to be of experience and professional technique, they can give some help in designing a proper plan to finance and to pay for the mergers. The third part gives an analysis of the risks in the investment banks' M&A business and raises a suggestion on how to deal with them. The fourth part suggests some strategies about M&A business for investment banks in China. In macrocosmic, Capital market should be developed deeply, M&A legislation should be integrated, and government behavior should be normalized to make a fine environment for investment banks. In microcosmic, investment banks ought to take a quick step of self-development and dilate the size and strength of business through recombination within industry to deepen the convergence and speed up the development of M&A business of investment banks in China.