The Study Of SMES'M & A Capacity

Merger and Acquisition is the most effective way for an enterprise to grow rapidly in a short time. In China, from the first acquisition in 1983, M & A had become the growth way which the enterprises were crazy about. But the success rate of M & A is very low, the failure and lessons are also painful. During all the factors which caused failure, the low capability to do acquisition is one of the important reasons. Therefore, if SMES want to grow rapidly through M & A, to evaluate their ability before they plan acquisition activity is a key problem.Started from the basic, this article made a simple system research on M & A ability. Based on the previous research, this article redefined the M & A ability, analyzed the elements, and studied the evolution traces. The key point is to evaluate M & A ability by building modelsFirstly, basing on the retrospect and review of Competence Theory and M & A ability, this article analyzed the ability based on the internal and external conditions and defined that M & A ability is the ability to complete M & A with available resources and achieve the aim.Secondly, this paper analyzed the elements of M & A ability and factors which affected the evolve, like the national economic development level, the social system, the legal system, the enterprise scale, the professional manager and the growth way.Based on the fully understand of M & A ability and according to the characteristics of SMES, this article make out the index system. There are 3 first-class indexes. they are external environments, internal resources and M & A strategy. Every first-class index is divided into four secondary indexes.We use analytic hierarchy process (AHP) to calculate the weight of indicators, use Fuzzy Comprehensive Evaluation to evaluate and establish the evaluation sets, and then, by maximum subordination principle, to confirm the M & A ability of target enterprise.Finally, according to the study in this paper, the method to improve the SMES'(M & A) ability was given. The following five aspects should be considered:Enhance the enterprise talented person troop construction Strength staff training and master the modern information,Establish a professional M & A team inside the firm, Expand financing channels and enhance the capacity of financing, Raise the management level and introduce advanced technology, This paper is exploratory study on M & A ability and evaluation method. In the near future, we can also try to study in more aspects and multiple views!...