Company M&A Strategy Choice Based On Two Kinds Of Life-Cycle Theory

To study the problem of enterprise M&A, this paper is mainly based on the previous hypothesis of "Industry Life Cycle and M&A Type", which means studying the M&A performance of enterprises in each stage of industry life cycle for different M&A types。A large number of literatures suggest that there are many differences among the previous studies。In this paper, an industry consist of many enterprises which have different situation, even though they are at the same stage of industry life cycle。It is easy to image that some enterprises in growth stage are just created, and some are springing up, while enterprises in sunset industry may not have lost their energy of sustainable development。Therefore, as a factor affects on performance of different M&A types, whether the Industry Life Cycle theory is not so convinced that it is necessary to introduce the Enterprise Life Cycle theory。This study starts from enterprise M&A theory and Life Cycle theory, based on the previous hypothesis of "Industry Life Cycle and M&A Type", and propose the Enterprise Life Cycle theory and M&A type hypothesis in a innovative way。Literatures are reviewed from three different aspects and most suitable theory and methods are adopted for this study。Mainly in:First of all, theoretical review of enterprise M&A has defined the scope of M&A in this study。Based on previous division of M&A type, this study distinguishes related M&A between diversified M&A through researching the essence of M&A business。Secondly, this paper sums up most of research in Industry Life Cycle Theory, dividing the industry life cycle into three different periods as the growth stage, the maturity stage, the recession stage,by the most suitable method。 Thirdly, Enterprise Life Cycle Theory is the most important view point in this paper and will take the hole third section。The differences between Industry Life Cycle Theory and Enterprise Life Cycle Theory are distinguished by viewing a lot of literatures。Meanwhile, the most suitable method of enterprise life cycle division is adopted。81sample companies are divided into three different stages by the method mentioned above。Finally, this study try to do performance research of different M&A types by introducing Enterprise Life Cycle Theory, making some improvements and additions on the basis of previous research。In this paper, more than2000M&A businesses happened in2006among81listed companies are picked as the research sample。Accounting research methods are applied to do the empirical analysis of the M&A performance in different enterprise life cycle stages for the different M&A types。As the research idea, Enterprise Life Cycle Theory is introduced when analysis the performance of different M&A types, doing the empirical research based on the two Enterprise Life Cycle Theories for the optimization of M&A types。By comparing the conclusions, Enterprise Life Cycle Theory can reasonably explains the differences of previous research on Industry Life Cycle theory。...