The Research On Strategy Of Target Company’ Selection In M&A Of Chinese Equipment Manufacturing Industry

Equipment manufacturing industry is a national strategic industry,which is the basis for the development of national economy, and with a strong equipment manufacturing industry, it’s also the fundamental guarantee for realizing the national industrialization. With the rapid development of Chinese economy, companies have a high demand for advanced equipment manufacturing technology, while also facing the problem of digesting equipment manufacturing’s overcapacity. Cross-border M & A is an effective way to solve these problems. Currently,Chinese equipment manufacturing companies have launched a large-scale overseas M&A,on the one hand to meet the domestic demand for advanced technology, on the other hand to expand overseas market and reshape our role and status in the international division.Selecting an appropriate acquisition target is a key factor of the success of company’s M&A. Based on the background, this paper firstly summarizes the research on selecting target company in domestic and foreign,then reviews the the theoretical basis of corporate’s cross-border M&A from corporate foreign direct investment theory and corporate’s M&A. Through the analysis of charts and data,from the scale of transnational M&A,location distribution, industrial distribution three aspects describe the status of Chinese equipment manufacturing enterprises’M&A,concluded that Chinese equipment manufacturing enterprises concentrate on Europe, America and other districts to find target company.On this basis,explaining Chinese equipment manufacturing enterprises’characteristics of target selection in four stages, and focus on the factors which affected corporate’s objectives choice from the target company and the acquirer two sides.Then combined these factors with the analytic hierarchy process together to build a model of target selection of cross-border M&A of Chinese equipment manufacturing industry, through the model to judge the importance of various factors when choose the target company, and then give an example to describe it in detail. Finally, propose some targeted suggestions from government and enterprises two angles based on the problems in the acquisition process and research result.