The selected target market of M & A need according to the external environment and business strategy

  • Time: 2013-08-01 10:48:28
  • Source: SLEEING
  • Hit: 2556

After the company decided to implement the merger and acquisition strategy, need a base through a comprehensive analysis of enterprise's external environment and internal resources, the selected target market.
1, the external environment analysis
Enterprise merger and acquisition activity is carried out in the market environment, mergers and acquisitions before implementation needs to focus on political, legal, economic, social and other external environmental factors.
Plans for the development of political factor refers to those with certain influence on M & a international political activities, major economic policy and government decrees, political measures. In recent years, the political situation change impact on acquisition performance is more and more big. Such as, the key support, the national development of the industry or regional, the M & a performance is relatively good; industrial or regional and national compulsory development, mergers and acquisitions performance may be adversely affected. Such as, "Twelfth Five Year Plan" period, China encourages automobile, steel, cement, machinery manufacturing, electrolytic aluminum, rare earth, electronic information, medicine industry alliances, cross regional merger and reorganization.
The law is a kind of means of government management of enterprises, most countries in the world, has become or is becoming the economy regulation. The legal factors which influence enterprise merger and acquisition of strategic decisions in many aspects, such as legal norms, the national judicial authorities, awareness of corporate law, international law, international legal environment of the target country domestic legal environment.
Economic factors refer to a country or area to mergers and acquisitions affect the macroeconomic conditions, including economic development, economic structure, the income of residents, the consumer structure of. M & A in addition to attention to macroeconomic cycle and industry boom, but also understand the structure characteristics, ready to enter the development prospects of the industry, competition, market status, barriers to entry and the height of the product life cycle and other factors.
Social factors refers to the social various things, including social system, social groups, social communication, ethics, law, social public opinion, customs etc.. The existence and their action is strong, influences the formation and change attitudes. Generally speaking, M & A will be of concern to society, the various stakeholders will implement the influence from the aspects of mergers and acquisitions. Enterprises in the implementation of mergers and acquisitions, should carefully consider the social effects of mergers and acquisitions, and formulate related plans, to avoid the failure of mergers and acquisitions due to factors such as corporate image damage.
Analysis of 2, internal resources
The enterprise is a collection of resources, mergers and acquisitions of enterprises under the background of resource can be acquired, specificity, transferability, reusability, compatibility and other characteristics, and all kinds of resources due to differences in the characteristics of industry and regional selection have different preferences. In each deal, M & a need analysis of the business enterprises in the possession and control of resources and the market of strategic importance, from the start of the strategy position to identify strategic resources and demand, combined with the resource characteristics and preferences, to determine the direction of the M & a viable option.
Generally speaking, enterprises need according to the external environment and business strategy, do. Avoid easily into unfamiliar areas, if for some reason need to enter not familiar with the industry, it should be based on long-term feasibility research, formulate specific operational programmes, so that after the success of mergers and acquisitions to achieve complementary advantages between industry as soon as possible. At the same time, the merger will prudently examine their management capacity, determined in the management field and how much can play the greatest. At the same time, need to accurately judge the current economic strength can bear the Target Corp in the extent to which the purchase price of gold and the integration cost.

 

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