Financial Mergers And Acquisitions In The Target Companies Have Chosen To Study

The merger and acquisition of finance enterprises is a long journey to run, where a key factor should be considered is to select the target financial enterprise. This is the start of finance M&A, also it would guide the process of the whole M&A.The decision of finance M&A is based on the internal and outer reason. In this paper, we give a model about the affection between the finance development and economy growth in China. In the model we build a new variable which is the multiply of finance development and change of ownership structure. By the regression of panel data of Chinese provinces, we prove that the finance development and economy growth in China give an outer push to the finance M&A. In the analysis of internal reason of finance M&A, we well measure the scale economy and scope economy by using each advantage of trans-log cost function and compound cost function. Also we compare the difference between finance M&A and building a new one, in order to know which method will be the better.If having decided the way of finance M&A to achieve the development strategy of finance enterprise, we then should totally analysis the target financial enterprise. We analyze the environment of macro-economy and micro-economy firstly. Then we give the method and standard to collect the information of target finance enterprise, also the way to distinguish,filter and audit the information. In the paper, we give the steps to collect information, also the way to feedback information. Then we build models to search and filter information of target finance enterprise.An important question to select target finance enterprise is how to evaluate its value. There are many shortcomings in the old methods to evaluate the value of finance enterprise for that they could not exactly estimate the overflow value in finance M&A. So we introduce the value assessment method of real option. According to the operation of finance enterprise in debt, we emphasize the importance of business reputation in finance enterprise value assessment. We point out that the value assessment of finance enterprise should be in a broad sense. The value of finance M&A should include the value of target financial enterprise and the value of dominant finance enterprise, also the whole enterprise after the M&A. Based on this broad opinion, we then give a multi-index system of finance enterprise value assessment.The effect of 1 +1>2 in value assessment of finance M&A could not come true easily. We pursuit the amalgamation and grandness of the two partner finance enterprises after M&A. While this is not only decided by their value, but also the matching of their whole resource,the transfer efficiency of ability and the realization of all kinds of cooperation effect. The finance M&A is a dynamic process. So we should treat the conformity of all kinds of resource in a dynamic way. And we following give an analysis frame of matching the whole resource.It will be lucky to find a fit finance enterprise for M&A. But whether the finance M&A could be succeeded is decided by that the interest of every partner involved should be satisfied, also the risk be controlled. Based on the combination of risk and revenue, this paper analysis the confliction,competition and harmonization of the two partners in finance M&A. We analysis the game between finance enterprises in same trade M&A, also the game in different trade M&A. We analyze the game of defense in finance M&A. We analysis the M&A game in finance when there are latent competitors. Also we analyze the behavior of the government in finance M&A.This paper deeply and systematically studies the difficult question of the selection target finance enterprise in finance M&A for theory and practice . So we could increase the probability of finance M&A by avoiding the M&A trap. At the same time, by selecting the target finance enterprise reasonably and effectively, we could decrease the risk in finance M&A.