The Research On Selection Of Target Company In Strategic M&As

With competition more and more furious, Mergers and Acquisitions (M&As) in enterprises occur more and more frequently. M&As have become an important way for enterprise to grow. Consequently, M&As also have become a hot study for scholars to research. After reviewing the relative researches, it is found that most researches focus on the theoretical analysis of motives for M&As, the empirical test of performance after M&As, the information search for M&As and the integration after M&As. However, an important step before M&As has been neglected-the selection of target company. Considering it, this thesis takes the selection of target company in strategic M&As as the object to research, with the hope to consummate the former research. At the beginning, this thesis analyzes the reason for bad performance after some M&As and arrives at the conclusion that improper selection of target company is one of main reasons for the failure of M&As.That also accounts for the importance of target company selection. Then, this paper analyzes the theoretical base and motives for strategic M&As and puts forward the core ideas of this thesis-whether M&As can cultivate and strengthen core competence of the corporation and strengthen competitive advantage is the basic criterion for company to select target. Next, with the criterion of cultivating and strengthening core competence and competitive advantage, this thesis analyzes the selection of target company systematically, using logical analysis. At last, this thesis uses a case study to verify the prior theoretical analysis and thus strengthens the persuasion of this thesis.