I. Strategic Preparation Stage The strategic preparation stage is the beginning of M&A activities and provides guidance for the whole M&A activities. The strategic preparation stage includes determining M&A strategy and finding M&A goals.

(1) Determining M&A strategic enterprises should carefully analyze various strategic options for value growth, and determine their own positioning according to their industry status, resources, capabilities and development strategies by relying on themselves or through cooperation with financial consultants, and then formulate M&A strategies. The content of M&A strategy includes M&A demand analysis, M&A target characteristics, M&A payment method and fund source planning.

(2) The search criteria for M&A target enterprises to search M&A target enterprises are formulated according to the requirements put forward in the M&A strategy. Optional basic indicators include industry, scale and necessary financial indicators, and may also include geographical restrictions. Then, according to the standards, enterprises that meet the standards are collected through specific channels. Finally, after screening, the target enterprise that best meets M&A company is selected.

Second, the scheme design stage The second stage of M&A is the scheme design stage, including due diligence and transaction structure design. (1) Due diligence The purpose of due diligence is to enable the buyer to discover all the information about the shares or assets he wants to buy, discover the risks and judge the nature and degree of the risks, as well as the impact and consequences on M&A activities.

The content of due diligence includes four aspects: first, the basic situation of the target enterprise, such as subject qualification, governance structure, main products, technology and services; Second, the operating results of the target enterprise, including the company's assets, property rights, loans, guarantees and so on; Third, the development prospect of the target enterprise, analyze its market and make some predictions according to its business model; The fourth is the potential loss of the target enterprise, and investigate whether there are potential risks or losses in environmental protection, human resources and litigation of the target enterprise.