Research On The Methods And Influencing Factors Of Listed Companies’ Mergers And Acquisitions

With the process of world economic integration and the intensification of market competition,the number,scale and scope of mergers and acquisitions are also expanding,from horizontal mergers and acquisitions in the same industry to vertical mergers and acquisitions connecting the upstream and downstream of the industrial chain,and then to mixed mergers and acquisitions.At the same time,the M&A payment method has been further developed,from the initial single cash payment method to stock payment method.At present,there have been many payment methods such as cash,share swap and leveraged buyout.In recent years,with the progress and optimization of relevant domestic legislation,M&A activities have accelerated.With the maturity of the capital market,the M&A activities carried out by private enterprises have greatly increased,and M&A has gradually become an effective way to expand capital.And the choice of payment method is particularly important in enterprise merger and acquisition.In terms of the overall structure,the main objects of study in this paper are intended to be the M&A cases of Midea and Eastern Airlines by using the methods of case analysis and financial ratio analysis.Comparing the difference between the two payment methods,specifically paying by cash in Midea case as well as paying by stock in Eastern Airlines case,this paper try to discuss the inner motivation and to analyze the business performance.The results in Midea case suggested that paying by cash might bring some effects on debt paying ability in short term.But in the long term,in terms of its comprehensive strength,the financial performance demonstrated that cash payment might make a positive impact,as the growth of profitability,growth ability and debt paying ability.Compared to the case of East Airlines,there were no significant changes of financial performance by means of paying by stock,because of circumvention of reducing cash flow,which might lead to the goal of promote comprehensive ability rapidly.On the basis of M&A cases,some suggestions of choosing proper payment method are offered to the enterprises,which intend to merge and acquire in the future.