A Research On The Characteristics And Selection Of M&A Target Companies

With the development of Chinese economy,the concept of M&A arises more frequently in the economic life.In this background,the M&A,as one of the most effective ways,has been put more and more emphasis on.In each M&A activity,the buyer company will choose the target company to ensure that the M&A activity can provide the necessary production resources for its development.Therefore,it is necessary to study the characteristics and selection of target companies in M&A activities.Based on the former theories,the thesis selects 71 manufacturing M&A target companies,71 manufacturing non-M&A target companies and 27 other industry M&A target companies as samples and uses the data of them in 2015-2016 to analyze the issue.In the practice of research,the thesis uses the one-way analysis of variance and the logistic regression to build the model.Firstly,by comparing the corresponding indicators between manufacturing M&A target companies and manufacturing non-M&A target companies,the thesis finds that compared with manufacturing non-M&A target companies,manufacturing M&A target companies have poor profitability,weak debt-paying ability,weak growth ability,low company value and decentralized equity.Secondly,by comparing the corresponding indicators of M&A target companies of manufacturing industry with those of other industries,the thesis makes a study on the relationship between M&A target companies of manufacturing industry and other industries.It is found that compared with other M&A target companies,the M&A target companies in manufacturing industry have weaker operational capacity,lower equity scale and more decentralized equity.These characteristics may be related to the long process of realizing their own value and more production-oriented capital investment.Finally,through logistic regression analysis,the thesis finds that in the process of M&A in manufacturing industry,the choice of target company is negatively correlated with the return on net assets and the total ratio of the top ten shareholders.