Characteristics Recognition And Prediction Analysis Of Merger And Acquisition Targets In Manufacturing Industry

In the year of 2015,C hina has been to the New Normal of the economy.Influenced by the environment of the Industry 4.0,The “Made in China 2025” plan,which is the strategy of transforming C hina into a leading manufacturing power,w as issued by The State Council in order to deal with the New Normal of China's economy.The key point of been a leading manufacturing power is to expedite the transforming and upgrading of industries.The M&A could help integrate resources and optimize allocation of resources between different companies,so that the adjustment and upgrading of the industrial structures can be facilitated.Only if the most of the manufacturing companies in the country can keep continuous innovations and developments,China's manufacturing companies can grasp the core of the technologies of manufacturing and have the international competitiveness.Therefore,for the technology-intensive and knowledge-intensive manufacturing,the core of the competitiveness is based on the cont inuous innovations and sustainable development abilities.This paper selects the M&A projects of the manufacturing companies in 2014-2015 as the research target.In addition,there are 44 target companies as the sample group,and 44 non-target companies as the control group.There are 44 variables which are designed for reflecting the 7 characteristics,which are the efficiency of managements,the balance of resource & growth,financial leverage,firm size,the value of the company,stock rights' structure and continuous innovations and development abilities,of the target companies.Based on the significance testing,it is recognized that the companies in the sample group have the similarities which are the small size of the firm,low profit abilities,low growth abilities,high shareholding concentration,unstable stock rights,and low continuous innovations and development abilities.By using the Factor Analysis Method and the Logistic Multiple Regression Method,the multivariate model can be set up to predict the possibilities of M&A of the target companies.The comprehensive accuracy of the Back Substitution Test of this model is 72.7%,the comprehensive accuracy of the prediction of future data is 71.4%.These data indicate that the Model is feasible for the prediction to the M&A target companies of the manufacturing.