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The Research on Selection of Target Company in Strategic M&A
Author: LiZengYan
Tutor: WangXiaoBo
School: Xiangtan University
Course: Accounting
Keywords: Strategic mergers and acquisitions(M&A) Target company Analytical Hierarchy Process(AHP)
CLC: F271
Type: Master's thesis
Year: 2008
Downloads: 330
Quote: 3
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Abstract
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With arrival of the fifth waves of mergers and acquisitions(M&A), strategic M&A have become the trend of the times.As the competitive pressures at home and abroad,Many enterprises regard mergers and acquisitions as an effective way to rapid development and expansion, hopes to seek synergies, access to the "1 +1> 2" effect. However, Looking at the domestic and international M & A cases we can see that the success rate of corporate mergers and acquisitions has been very low, how to improve the success rate of corporate mergers and acquisitions as a solution to be an important research topic. Mergers and acquisitions leed to the failure of many reasons, but one of the most important one is that the selection of target enterprises caused by improper. The right target equivalent to half the success, and this is no exception in the M & A and improve the accuracy of mergers and acquisitions ,targeting mergers and acquisitions will undoubtedly ensure the success of a very important significance. Most of the literature and not from the micro-level study on how to choose matching the objectives of enterprises, so this option choose the strategic acquisition of target enterprises selection as a study in order to meet the shortfall, the M & A practice in the selection of target companies to provide guidance and reference.Through the acquisition from domestic and international theory and practice and related financial, management knowledge, will deal with the theory of core competence theory, from the perspective of core competencies of strategic mergers and acquisitions in the selection of target companies. Based on the proposed merger of the enterprise’s core competencies to the target enterprises to choose the point of view, and on the basis of this study on the strategic objectives of corporate mergers and acquisitions in the selection process and methods.The core content of this paper is to analysis Target enterprises selection course of the strategic M & A, and made the selection target companies in strategic M & A three-step ideas. the first step of strategic M & A target enterprises seletion is to determine strategic objectives of the M & A, through the merger of their core competencies to identify the location and status, to carry out the strategic goal of positioning acquisitions, M & A strategic goal of the merger also decided to choose the direction of target enterprises And standards; second step is for the candidate of the target enterprises, the assessment of standards in line with the objectives of corporate M & A in the analysis, evaluation, selection of target enterprises optimal access to adequate information for decision-making, the paper’s corporate objectives of the analysis, evaluation main Including internal and external state of the environment analysis, evaluation and acquisition integration risk forecast analysis; third step is to use AHP Construction of the delivery model, the optimal selection of target companies. Based on industry-related, resources and capacity advantages, the value of coordination, integration risk evaluation index, the objective of the establishment of enterprise class, choose the delivery model, through quantitative and qualitative analysis of the combination, to study the optimal selection of target companies.
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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise system
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