Mergers And Acquisitions Of Listed Companies Financial Decision-making Research

We define M&A that two or more independent enterprises or companies combine into one. This is an important method to develop under the market-oriented economy. We should make sure that the economic benefits exceed the cost of the M&A. This article analyzed the activities from the viespoints of paying cash and exchanging shares, and came up with the models. I collected some data, and analyzed them using the model. I think the fianancial effect will present into a wavy line. It will ascend, then descend, and ascend in the long period. Also, the long-term benefit is the main point of the M&A. On many occasions, the existing adwantages,such as the market, the patent, resources, are the targets of the private listing companies. The private listing companies want to make use of these advantages to promote the development, enhance the strength, and get more market shares. Meanwhile, the private listing companies can enter a new industry by means of the M&A. The private listing companies can reduce the beginning investment and the operating risk greatly.This article, firstly, presented the background and purpose of the analysis. Also, the analyzing situations of both home and abroad are included. I came up with the model of financial decision through the M&A factors analyzing. I made some analysis towards that the private listed companies merge with different kinds of enterprises. Finally, the conclusion of this article emerged. Also, I had some advice and outlook to this conclusion.