| Mergers and Acquisitions (M&As) are normal enterprise activities and economic activities under market economy conditions, which are significant strategic activities in the development process of businesses as well as the necessary results of market competition. However, cash study of late years shows that although M&As of listed companies take place frequently, most of them have the objection of pursuing profit in a short term, i.e. financially driven M&As. Financially driven M&As can not improve the conditions of listed companies, and it can never realize the optimization of resources allocation in stock market. With the market getting more perfect, with investors getting more mature, with the accession of China into the WTO, financially driven M&As will leave the history stage forever, instead, strategic M&As with the objection of realizing the maximization of value-added will lead the direction.Strategic M&As is also a game of both parties. In order to achieve expected objection of M&As and realize the optimization of resources allocation, it must meet the simulative and limited requirements in M&As game model. At the same time, Strategic M&As is not a simple zero-added game, but a process in which both are winner, it should be subject to the general law of investment, that is to say, strategic M&As need think about risk, earning and cost overall.In fact, M&As of listed-company is control power buyout. Under the strategic M&As, the merging company can identify significant features of the target company, therefore lessen the circumscription of search; after completion of first selection of target company, the merging company should analyze its fundamental information carefully; moreover, as open messages of listed-company, financial statements should be analyzed carefully too. Though Principal Components Analysis the merging company can evaluate the operating result of the target company so synthetically as to master its operating condition precisely.The financial management during M&As transaction, including the pricing of the target company, the financing of the merging company and the selection of modes of payment are necessary and significant procedures in the situation of strategic M&As. While comparing the advantages and disadvantages of all kinds of modes, people engaged in M&As should pay attention to the innovation continually.Scale does not equal to efficiency. After the completion of M&As transaction, the merging company has a structural optimization process, i.e. through spin-off or split-up to lessen the scale, strengthen the prime businesses and increase efficiency; at the same time, restructuring and integration of merging company after M&As are essential procedures in the course of M&As transaction. Whether a M&As transaction can achieve a final success is determined by whether powerful integration measure is taken. |
