With the establishment and continuous improvement of modern enterprise system in China's socialist market economy, mergers and acquisitions of Chinese enterprises are also developing. After more than ten years' development, the number of mergers and acquisitions of enterprises in China has gradually increased, which has a great impact on economic development. However, compared with developed countries, there are still many problems to be solved urgently, which need our further study.
1 analysis of the reasons for the failure of mergers and acquisitions in China.
1. 1 government reasons
1. 1. 1 government policies at all levels are imperfect and not implemented.
In terms of fiscal and taxation policies, the government has issued a series of preferential policies to encourage mergers and acquisitions. On the one hand, these policies have promoted the adjustment of China's industrial structure and organization, but on the other hand, they have brought many negative effects because of the incomplete and imperfect policies. For example, in the summer of 1997, Hubei Kangsai Group acquired Zhejiang Yama Silk Group Company, which was once vigorous and eye-catching, and finally ended in the closure of Yama Group and the employees of 1200 were laid off. The reason is that after the merger, the merging party did not obtain the preferential policies and bank loan commitments of the local government of the merged party before the merger.
1. 1.2 The restriction of the current fiscal and taxation system on enterprise mergers and acquisitions needs the coordination of the government.
Because enterprise income tax belongs to local governments at all levels, local governments are reluctant to let the property rights of dominant enterprises trade in order to ensure fiscal revenue. At the same time, China's financial institutions and credit scale are set up in blocks and distributed in blocks, which makes it impossible for enterprises to transfer loan indicators after cross-regional mergers. The merged enterprises can't get loans in the place where the merged enterprises are located, and they also lose local loan opportunities, which restricts the dominant enterprises from entering the property rights trading market and merging across regions and departments.
1.2 Enterprise reasons
1.2. 1 set foot in new industries with high risks.
In order to avoid industry risks and meet the needs of rapid growth, many enterprises implement cross-industry mixed mergers and acquisitions. Such mergers and acquisitions often put forward higher requirements for the acquirer: strong control over diversified groups; Strong adaptability in new fields; Cross-industry development management capabilities and so on. Some enterprises just ignore these preconditions and venture into new industries, leading to failure. Practice at home and abroad shows that the failure rate of cross-industry mergers and acquisitions is three times that of intra-industry mergers and acquisitions.
1.2.2 Lack of M&A thinking oriented by core competitiveness
At present, the reality of China enterprise M&A is the lack of strategic thinking oriented to core competitiveness. In the process of M&A, the construction and cultivation of core competitiveness are not considered, enterprise groups are greedy, government departments are excessively pursuing diversification, implementing irrelevant diversification strategies, overemphasizing low-cost expansion, blindly acquiring a large number of small and medium-sized enterprises, and the scale is rapidly expanding, while the management system is lack of corresponding perfection, which leads to a large increase in management costs, which is simply caused by external expansion and does not take into account the result of cultivating enterprise core competence.