Venture Capital,M&A Types And Performance

In recent years,with the gradual maturity of China's capital market,mergers and acquisitions among enterprises have become more frequently and universal.The selection,evaluation and payment of the target have become the objects that managers pay special attention to in the process of merger and acquisition.Once the M&A strategy deviates,it will bring immeasurable losses to enterprises,shareholders and smaller investors.Over the past 30 years,China's economy has grown by leaps and bounds with abundant cash.Many enterprises can achieve much profits even if they do not select and research the target,and diversify arbitrarily.However,China's economy has gradually changed from "speed" to "quality",and the capital market has entered a new stage of "speed reduction and quality improvement".The companies that have been diversified blindly and regardless cost to pursuit scale have been stripped their gorgeous disguise overnights and revealing their real scars.Many enterprises diversify blindly,and fuzz their main business,which makes them feel difficult to carry on.As we all know,after the rapid development and differentiation,venture capital has gradually become a kind of financial institution with professional background,which often plays the function of supervision,governance and consultation in enterprises.Therefore,it is of great theoretical and practical significance to study how venture capital institutions apply their unique expertise in the procession of selecting target before merger and acquisition,inspecting and evaluating during merger and acquisition,and the integrating after merger and acquisition.Based on the background,this paper selects the M&A events of SMEs and GEM,which contained companies from 2009 to 2016 as research samples to discusses the impact of venture capital on the type of M&A.It also discusses the role of venture capital institutions in improving the performance of M&A by combining the types of M&A.Compared with the enterprises without venture capital,this study shows that the enterprises with venture capital support are more inclined to choose correlative M&A,and on the basis of correlative M&A,the enterprises with venture capital support are more inclined to choose the technology M&A.At the same time,it is found that venture capital has a significant industry regulation effect inM&A.That is to say,venture capital only has a positive effect on correlative M&A and technology M&A.Meanwhile,this paper analyzes the different characteristics of venture capital,and finds that the number of venture capital,the directors,the number of directors and state-owned venture capital can significantly improve the probability of enterprises choosing correlative M&A and technology M&A.However,in the aspect of M&A performance,only state-owned venture capital can significantly improve the M&A performance of enterprises in correlative M&A and technology M&A due to the existence of certain "noise" in correlative M&A.The number of venture capital,the directors,and the number of directors can only improve the M&A performance in technology M & A.Finally,this paper affirms the key role of venture capital in supervision,specialization and integration during the process of M&A,and encourage venture capital to participate in M&A from imposing laws,participating in the board of directors,broadening the capital supply of venture capital in related industries,and establishing advanced talent team.And then,the venture capital will guide the enterprises to choose reasonable and non blind M&A,so as to enhance the value of the company.