Mergers And Acquisitions On The Pros And Cons Of Promoting Rapid Development Of Enterprise

Since China has become a member of World Trade Organization, it will surely expedite the market-directed economy. The protection period for the domestic enterprises will be over very soon which will lead domestic competition to turn into multinational competition. Many foreign competitors are so big that they can monopolize 60% to 70% of the market; while most of the Chinese enterprises, are proved not to be competitive. It is a very important issue for Chinese people to know how to foster and develop domestic giant enterprises, protect national economy. In my thesis, I give some descriptions about the history, the theories, the ways, the examples of cases of acquisition and merger, so as to analyze the basic regularity of domestic and international acquisition and merger, get to know its function of promotion to enterprises. On the basis of current situation, I also make some suggestions to those who have been doing the capital operation. In the first part of my thesis, it gives the various theories, concepts and ways of acquisition and merger, which helps to understand the capital operation. In this part, it also reviews the five waves of acquisition and merger in American history, its causes and effects on the society and what lessons we should draw from it. It also includes the history of China's acquisition and merger and reveals the tendency of its future. All these provides with good reference for the development of China's acquisition and merger.In the second part of the thesis, it analyses, from both side of the internal management type strategy and the external transaction type strategy, the principle of acquisition and merger. It also mentions some problems happened during the practice. It discusses the influence, the usual traps and the countermoves during capital acquisition and merger practices, which may prevent people from making the similar mistakes.In the third part, three typical cases happened in the acquisition and merger market are described. One of them is DELONG who once made the great achievement in industrial and capital fields, but now is put in a tight spot. The second one is ZHONGKE which made great impact in the stock market and collapsed due to violating the state law and speculation. The third case mentioned in my thesis is the acquisition and merger between two American giants HP and COMPAQ. Readers could understand more about domestic and international situation of acquisition and merger after reading this three cases and learn a good lesson from their failure.The market competition is so cruel that any acquisition and merger is like a war, and people struggle for their own interest. In the last part of the thesis, some comments and suggestions are given for the operation of acquisition and merger in China. It also advises the government to take measures to help the development of national enterprises. All the analysis in the thesis is the practical reference for those who are getting involved in enterprises acquisition and merger.