A Comparative Study Of The Effect Of Mergers And Acquisitions In Different Modes

Up to now, a total of five times around the world occur in the M&A boom infull swing, mergers and acquisitions has always been concerned scholars andimportant area of research. Global M&A deal size of up to two trillion US dollarslast year, an increase of nearly80%, is a milestone in the history of mergers andacquisitions. Most theorists studies have shown that mergers and acquisitions canexpand production scale and reduce costs; M&A can occupy more market resources,the dominant position in the negotiations; M&A can achieve a wide range ofbusiness, reducing possible bankruptcy. But in fact, there are many failuresprecedent, M&A activity is not actually improve the business situation. McKinseyoccurred in the20th century through the1990s, nearly a half from the M&A eventsunfold, and found that earnings growth or whether it is from the perspective ofmarket share, nearly70%of the transactions were not finally achieve the desiredobjectives. KPMG to occur in more than one hundred M&A events in the1990s of astudy, the results showed that from the perspective of shareholder value point ofview, there are more than two-thirds of the deal eventually failed. In this context, thispaper choose different modes to expand M&A performance comparison study to bedescribed is divided into five chapters.The first chapter introduces the global economic situation, described in theM&A market in full swing under the background of variation after the completion ofthe acquisition of the business performance is necessary to study, analyze businessperformance issues in different acquisition modes help guide business according totheir actual situation and needs of mergers and acquisitions activity. The second chapter is on the Chinese and foreign scholars on the researchconclusions were summarized by combing understand current research findings andcontroversies exist in terms of M&A performance. In addition, through theinterpretation of classic literature at home and abroad, will help us to understand theperformance of merger and acquisition mainstream method, then these methods andour market data combined.The third chapter is divided into multiple acquisition modes, the current foreignresearchers to explore mergers and acquisitions focused on value creation inacquisitions and mergers and acquisitions motives, this part describes the former.The fourth chapter is the most important part of this paper, binding factoranalysis method and the composite score function variation of performance will bediscussed. Factor Analysis act as a "dimension reduction" role, screening factors playa major role, and then use them to represent all of the factors.The fifth chapter summarizes the results of this study, and accordingly putforward their own proposals, hope can come in handy when companies develop thetakeover proposal.