M & A Performance Evaluation System

Merge & Acquisition (M&A), as a means of resource redistribution, is playing an important part in the growth of an enterprise. It just the same as that said by the Nobel prize owner, famous American economics George J Stegerler:" Watching famous American giant enterprise, almost everyone adopt merger and acquisition to grow up by a way or to extend. Since Merger and Acquisition being used so largely, there must have inherent superiority." The inherent superiority of the M&A stimulates a great upsurge in enterprise's M&A. In the last few years, the merger tide in the range of the world has surged forward, rise one after another. But if M&A have brought the good performance result to enterprise, remain to be discussed. M&A of listed company is becoming a hot issue in the economic field. How to evaluate these changes with performance appraisal? What kind of evaluation is really effective? We should spend more time on this way to come up with the tide. The article concentrates on the construction of M&A performance appraisal system from the angle of M&A efficiency so that effectively appraise the issue of the enterprise's M&A performance.Firstly, study the effect of the M&A, summed up the effect of M&A. summarized the major objective of the enterprise's M&A is seek the effect of scale, market share effect, reducing trade cost effect, many-sided management effect, administration in coordination, financial in coordination effect, promoting core competition strength effect, based on looking up a great quantity documents and reference material. I will take these theories as a platform when building up the enterprise's M&A performance evaluation system.Secondly, study the evaluation methods of the M&A's performance. Emphatically analysis some current evaluation methods' concrete apply and its merits and demerits about the enterprise M&A performance, such as method of stock price change, abnormal returns method, evaluation method of the business, financial index system, non-financial index system, cost-income analysis method, discount cash flow method. And take this as technical sustain for constructing the evaluation system about enterprise M&A performance appraisal.Lastly, approach a subject that is hoe to construct a performance evaluation system from the angles of the scale effect, market share effect, reducing trade cost effect, many-sided management effect, manage in coordination effect, financial coordination effect,promoting core competition strength effect, based on the summarized and analyzed of the theory about the theory of M&A effect and its performance evaluation methods. The study aims at putting forward relevant counter measures. Whereas by approaching the evaluation method of M&A efficiency, the study endeavors to bring forth the guide for the decision and examination of M&A strategy and preparation for the theory of practical study.