Study On The Choice Of Payment Method For The Merger Of Company A And Company B

With the booming domestic M&A market,more and more companies have begun to choose to acquire resources and expand domestic markets through the fast channel of mergers and acquisitions.In the process of enterprise M&A transactions,the choice of payment method often determines whether the M&A activity can be successfully completed and achieves the purpose of M&A.At the same time,the payment method of M&A can also affect the financial status of M&A enterprises and the implementation of future development strategies.Therefore,how to choose the appropriate payment method in the process of M&A transactions is getting more and more attention from enterprises.Based on the background of company A’s merger with company B,the factors affecting the company’s choice of payment method are qualitatively analyzed from internal and external aspects,and the quantitative analysis of the design measurement model is used to further find out the factors that have a greater impact on the choice of payment methods.In the quantitative analysis process,based on the data collected from listed companies in the real estate industry from 2015 to 2017,linear regression was conducted through SPSS and backward screening strategy was adopted to gradually eliminate the non-significant factors,and the regression equation of the choice of payment method of listed companies in the real estate industry was obtained.According to the regression equation obtained,the data of Company A is collected and substituted into the equation to obtain the result.When dealing with the data of Company A,the static analysis and dynamic analysis methods are used in Chapter 5:According to the static analysis of A company’s 17 years of data,that is,the data is substituted into the regression equation to obtain the optional payment method of Company A for 18 years;A company’s previous four years of data combined with single factor sensitivity analysis for dynamic analysis,the data into the regression equation can be respectively derived the corresponding 18-year company A optional payment method.Finally,based on the analysis results,it is concluded that Company A chooses the payment method of cash and stock when it acquires Company B and the cash accounts for more than 70%of the total payment.