The Intention & Realization Condition Of Cross-border M&As

To obtain the endogenous enterprise advantage in international market is cross-border mergers and acquisitions' general intention. The endogenous enterprise advantage is produced and enhanced with the deepening of the specialization division inside the enterprise and among enterprises and with the extending of the market capacity. The owner of the enterprise will take the first consideration of the method of FDI to obtain the endogenous enterprise advantage in order to maximize the surplus of the enterprise income because of the limitation of the accumulation and the market failure as well as the incompletely imitability. Comparing with the method of Greenfield Investment, cross-border mergers and acquisitions can get more static and dynamic endogenous enterprise advantage. So, the method of the cross-border M&A is preferred.The successful realization of a cross-border M&A must meet with the condition of the balance of the cost and income form the cross-border M&A. According to this condition, we establish a dynamic model about the cross-border M&A. And the costs mainly coming from the transaction of the enterprise 's ownership and PMI and the incomes mainly coming form the static and dynamic endogenous enterprise advantage are concretely analyzed in this model. Successful M&As are affected by the dynamic variety of the costs and incomes. Minimizing the costs and maximizing the incomes lay the base for the target and regional choosing of the cross-border M&A.