Analysis Of Target Company Characteristics From The Perspective Of Mergers And Acquisitions

Merger and acquisition behavior among enterprises is an effective means to adjust the allocation of resources in the capital market.In recent years,with the gradual improvement of China's capital market,capital-led M&A has become the mainstream of M&A in a new era.Since 2014,veteran placards frequently enter the public field of vision.Especially in 2016,it was known as the "veteran year of awarding the license." A large number of outstanding enterprises caught the risk of raising the placards without any help.Although LBO is a normal behavior in the capital market,the malicious M&A of capital injections not only brings negative consequences to the M&A enterprises,but also brings significant negative effects to the capital market.The market behavior of all parties involved in the equity dispute of Vanke is actually a microcosm of the development of China's capital market.Studying the Vanke's target characteristics not only helps us to understand why Vanke is the target of M&A,but also obtains the commonality of many listed companies from Vanke Problem,sounded the alarm for other outstanding private enterprises in our country,with reference.Vanke is the benchmarking enterprise in China's real estate industry.It has been famous for real estate with advanced concepts and excellent performance.However,this dispute reflects the defects Vanke has in itself,which eventually led to its goal of mergers and acquisitions.Based on the motivation theory of M&A,this dissertation focuses on the core of target feature analysis and establishes a five-dimensional target company's feature research model based on quantitative and qualitative analysis.The model is used to analyze the target's characteristics.The conclusion shows that Vanke has rich features such as patent technology,high brand value,strong profitability and operation ability,undervalued value,relatively low M&A cost,decentralized share,large scale and prominent agency problems.This conclusion not only shows that capital is favored by high-quality companies,but also shows the tremendous negative impact on the excellent companies caused by the irrational ownership structure and the internal governance imperfection.Therefore,for many excellent listed companies in our country,it is very important to optimize equity,improve internal governance and perfect anti-merger mechanism while pursuing corporate performance.The last chapter of the article takes the shortcomings of Vanke as the starting point,considers the enlightenment brought about by the dispute over the ownership of China Vanke,and proposes relevant improvement opinions for listed companies and supervisors respectively.