A Research On The Characteristics And Selection Of Merger And Acquisition Targets

Merger and acquisition is one of the most important approaches of company capital operation.By merger and acquisition,one company can not only expand its business scale in a short time within rapid development,but also supply and adjust assets for the company,improve the structure of the industry chain and inject new vigor and growth points for the advancement of the company.The choosing of merger and acquisition target is a key part of M&A behavior,which leads to the success or the failure of M&A events.On the one hand,the study of characteristics of M&A targets can help the acquirer find the proper one from many candidate companies to make scientific and rational decision.On the other hand,the research can benefit the potential target firms identify risks from their own financial and non-financial characteristics;prevent themselves from being merged by carrying out more effective and reasonable management.This thesis focuses on the listed corporation in China's A-share market.Based on previous thesis and the real condition of target companies,the variables of the thesis are the representative financial and non-financial indicators of the sample companies.Then,ANOVA and multiple linear diagnoses are used to identify the salient features of the M&A targets with the non-targets.The thesis builds two forecast models respectively by using Logistic regression and discriminant analysis to make the prediction of the targets.The empirical study shows that there are many differences between the targets and the non-targets.In addition,by analyzing the two established models,it is concluded that overall more than 70 percent accuracy shows that it is available to make prediction on the target of M&A to a great extent.However,the accuracy of the two models is not the same,the Logistic model can better predict the M&A target,and the discriminant analysis can better predict the control sample.In practice,the combination of the two methods can predict the occurrence of mergers and acquisitions more effectively.