Research On Merger And Acquisition Strategy Of GIG Company

As a pillar industry of macroeconomic development,the construction industry is facing a new round of development opportunities and is accelerating its transformation to industrialization and science and technology.After more than five years of rapid development,GIG has ranked among the forefront of the domestic construction industry.Continuous M＆A has solved the problems of regional layout and scale expansion in the early stage of industrial development.However,due to the lack of M＆A strategy,it is still in an extensive development pattern in essence.The problems such as unreasonable business structure,insufficient specialization and insufficient scientific and technological content have become the bottleneck restricting the further development of the company.With the accelerated evolution of a new round of industrial reform,the company urgently needs to formulate a clear M＆A strategy to help the company achieve success in continuous expansion of scale,acquisition of professional qualifications,breakthrough in emerging markets and improvement of scientific and technological level through more accurate and targeted M＆A.Using PEST model,Porter’s five forces model,CPM matrix and other tools,this paper analyzes the external macro environment,industry environment,market environment and internal environment of the company’s M＆A strategy.At the same time,the IFE matrix and EFE matrix are used to assign weights to the internal and external key factors faced by the company’s M＆A strategy,quantify internal strengths and weaknesses（weighted score 2.72 points）and external opportunities and threats（weighted score 2.91 points）,which shows that the company can make effective use of external opportunities and avoid external threats on the basis of making full use of internal strengths and overcoming internal weaknesses.Use SWOT matrix to analyze the external opportunities and threats,internal strengths and weaknesses faced by the company,and formulate alternative M＆A strategies.The QSPM matrix is used to optimize the proposed alternative strategies,and it is determined that the "horizontal M＆A strategy" is the preferred M＆A strategy that the company should adopt,that is,M＆A industry competitors;At the same time,it is suggested that the company should choose the opportunity to promote the layout in emerging markets such as new infrastructure,pan infrastructure,construction service industry and construction industrialization through mixed mergers and acquisitions;Through vertical mergers and acquisitions,high-end design institutes and research institutes are acquired to open up the upstream and downstream of the industrial chain,reduce transaction costs and obtain effective business synergy.In order to ensure the implementation of M＆A strategy,taking an intended M＆A project as an example,this paper puts forward the specific implementation measures and plans of the company in the M＆A preparation stage,M＆A due diligence stage,M＆A transaction stage and M＆A integration stage;Then it puts forward the main risks before,during and after M ＆ A,and formulates targeted safeguard measures;Finally,the balanced scorecard is used to dynamically control and evaluate the implementation of the company’s M＆A strategy.Thus,through the implementation of measures,control and evaluation,it helps the company’s M＆A strategy to maintain a sustainable competitive advantage.