Influencing Factors Analysis And Evaluation Of Costs Of Merger And Acquisition

The cost of Merger and Acquisition (M&A) refers to the direct or indirect expenditures that M&A enterprises occured beause of the M&A activities. It runs through the whole M&A process, can occur in any forms as cash, equipments. It links to the profit of enterprises. Clearly aware of the influencing factors of costs of M&A, using evaluation method to measure these factors, identifing the key influencing factors, and thus take targeted measures to control the costs becomes an important problem that business enterprise concerned about. It directly influences the success of M&A of enterprise. Researching it has the most importance of reality meaning and farsighted meaning.This acticle analyzed the significance of influencing factors of cost of M&A firstly, from the perspective of global economic integration, in-depth development of China reform and opening up and accelerated international practice, increasing market share and enhancing market competitiveness, expanding the scale of corporate and preventing the risk of M&A to the research the significance; introducing the basic concept and content of the issues which studied, summarized the domestic and foreign research, and expounded the primary content which this article needs to study, the research mentality and the research method; Secondly, from the perspecive of M&A, transaction costs, industrial organization, input-output, this article emphatically elaborated the theoretical basis which we analysis, and laid the basis for it.Based on the study above, this acticle analyzed the influencing factors of cost of M&A, which from the perspective of specific situation of M&A of enterprises. The view of this article is that the influencing factors of cost of M&A combines the national environment, market environment, M&A enterprise and target enterprise, then analyzed the reasons of that detaily. Based on the influencing factors that analyed, using statistics, this acticle established a comprehensive evaluation index system of the influencing factors of cost of M&A. Then through the Delphi Method obtaining bands of the indexs, evaluating index weight accroding to The Analytic Hierarchy Process (AHP), structuring a fuzzy comprehensive evaluation model of the influencing factors of cost of M&A, thus measures the influencing factors of cost of M&A, and coming to the most influencing factors to provide a clear direction for costs controling. Come to the following conclusions: the control of the cost of M&A must be multi-pronged: at the national level, the government should strengthen policy coordination and guidance, refine the rules and regulations related; at the market level, it should speed up the construction of capital market, strengthen the support of financial organizations, build reasonable information disclosure mechanism; at the M&A enterprise level, enterprises should employ reputable intermediary institutions, focus on the integration after M&A; at the target enterprise level, enterprises should accept the new enterprise culture as soon as possible, cooperate with the integration of M&A actively, in order to control the cost of M&A effectively, and improve the benefits after M&A. Finally, in the form of case studies, this article selected a concrete M&A instance to illustrate this model and the analyed course, then 1came to the conclusion and related advices.