Discussion On Enterprise Mergers And Acquisitions In The Financial Perspective

With a continuously development of Market economy, the business mergence has already been an important way of the business enterprises in our country to extend capital and make use of resources effectively. Although the business mergence becomes very widespread, comparing to the cases which have a great amount of money and a great deal of quantities, the success rate of the business mergence is not very high. An important reason which the business mergence is failed is that the problems related with the finance haven't got solved effectively.This text mainly discusses a few important problems under the financial perspective, which have influenced the success of business mergence. The several problems are price-determination of business mergence, cost-benefit analysis, financing strategy and financial integration. The problems run through the entire process of business mergence and have an important impact on the behavior.Price-determining is the core of implementation of business mergence. The price should be determined through consultation based on the intrinsic value of the objective company. The intrinsic value of the objective company should be determined by using cash-flow-law at the core of the objective company's future value and considered intangible assets and risks of objective company as well. Only when the enterprises pay no more than the value of the target enterprises, the business mergence is feasible.The cost-benefit analysis is the foundation of implementation of business mergence. To operate the cost-benefit analysis, the scientific method of net present value should be adopted. To evaluate the feasibility of business mergence, in one hand, the net present value of the business mergence must be positive, in another hand, the net present value of the business mergence have to compare with the other investments(including the new one).Financing strategy is the key to implementation of business mergence. The...