Successful Mergers and Acquisitions -- On the Selection of Target Companies

Author: Qin Xijie
Publisher:
Publish Date: 2005-04-01
Features: This book applies modern analytical tools such as game theory, decision theory, and information economics, with the acquisition and revelation of information as the main thread, to establish a systematic research and analysis model for the target company selection process. Starting from setting selection criteria for target companies from a strategic perspective, it covers the entire process of information search and screening of target companies, as well as their strategic behaviors and win-win negotiations. This book conducts an in-depth and pioneering research on how to select target companies, fills a significant gap in the theory of mergers and acquisitions, and provides important guidance for practical M&A practices. The book points out that from the perspective of the behavior of the M&A entities, the systematic process of target company selection is a game of mutual decisions between the two parties. From the perspective of information utilization, the target company selection process is a three-stage process: search, screening, and game. The book includes numerous real-world cases and documentary materials, making it highly practical. The book argues that M&A is a cooperative game, and target companies are not passive or inactive in M&A. To discuss M&A without searching for target companies is like building castles in the air. M&A is essentially about selecting target companies. By applying the target company selection model proposed in this book for M&A investments, both parties can achieve a win-win outcome, the acquiring company can improve the success rate of M&A, effectively avoid M&A pitfalls, and thus achieve leapfrog development. The book is well-structured, with fluent language and a harmonious blend of theory and practice. It is suitable as a textbook for postgraduate and undergraduate students in economics and management disciplines, as well as for M&A researchers and practitioners who should have a copy. It can also be used as training material for corporate management teams, vocational and technical personnel, and individuals in various fields who wish to engage in capital operations.