Study On The Choice Of Payment Method Of Enterprises Mergers And Acquisitions

With the rapid development of economy, enterprises competitive pressure is increasing. In order to survive and develop in the competition, enterprises not only need to rapidly develop by their self accumulation so need to obtain their own shortage of resources by other means. Mergers and acquisitions is one of the effective means that enterprises quickly obtain their own shortage of resources. It can make the enterprise to complete resource integration by utilizing domestic resources, so as to rapidly improve the comprehensive strength of the enterprise, enhance the competitiveness of enterprises and make the enterprise rapid develop--ment. Now the high-tech industry has become the measure of a country’s soft power important criterion, especially in the software industry. In china, high-tech industry has short development history, low industrial level and small scale. So it has become imperative to promote the rapid development of high-tech enterprises by mergers and acquisitions.M&A include many elements, wherein the selection of payment method is an important issue. In this article, the research object is the M&A example that high-tech enterprises achieve corporate strategic purposes by mixing payment method. This article will focus on the problem that how to choose the payment method and the evaluation of payment method, and hoping to provide reference for the similar high-tech companies on how to choose the optimum payment method. At first, a series of payment method in Mergers and Acquisitions are explained. At second, the M&A case are introduced in detail. At third, using factors of payment method to analyze that how to choose the right payment method to meet the both demand for merger by way of comparison exclusion. At fourth, this article analyzes and evaluates the payment method on mergers purposes and revenue. The last is conclusions and deficiencies in this case.Based on the analysis of case, it is concluded: first of all, when companies choose payment method, it can be affected by many factors. So it should to choose based on their own financial situation and control factors on the premise of meet the purpose of merger. Secondly, payment methods should be diversified, that mixed payment. It can choose the right payment combination method based on the company’s needs, so it is the more reasonable and suitable for enterprise development than the single payment. Finally, enterprises may consider appropriate financing in the choice of M&A payment methods for the GEM high-tech enterprises.