Study Selection Of Target Companies In Strategic Acquisitions

In M&A activities, it is critical for acquirers to recognize and selectsuitable target companies, for target companies decide the M&A results insome cases. Therefore, it is necessary to discuss how to select targetcompanies. M&A has become the first choice of enterprises to strengthenpower and an increasing number of enterprises prefer strategic merger, whichcan gain synergistic effect based on each advantages to achieve corporatestrategy.The thesis focuses on selection of target companies in strategic mergeractivities by analyzing the case of COFCO and Mengniu. Mengniu was asuccessful private company, and COFCO is a national company, so the mergercan be called new national company activity. Since the exposure of milkscandal in2008, milk manufactures were attracted large notice. As a nationalcompany, COFCO merger was disputed.The thesis is in the form of case analysis, analyzing from some aspects,such as purpose, finance, market, culture, cost and subsequent analyses.Finally, the thesis concludes five points for selection of target companies,which can provide suggestions for merger enterprises.