Merger and Acquisition Situation of Chinese Enterprise
In 2014, the Chinese economy farewell triumph, is gradually stepping into a new orbit.
China's merger and acquisition market has completed a total of 1929 deals in 2014, compared with 1232 deals in 2013 increased by 56.6%; Mergers and acquisitions of disclosure amount totaled 1815 deals, involving a total transaction amount of $1184.90, An increase of 27.1%; The average acquisition amount of $6528.35.
Under the background of national economic restructuring, encouraged by major positive policies such as the State Council on further optimization of corporate mergers and acquisitions market environment, coupled with the promotion and implementation of the national strategy, the pace of Chinese corporate mergers and acquisitions is continue to accelerated, so as to achieve optimal asset allocation, expanding business scale, to achieve strategic restructuring, restructuring and other capacity. Thanks to dividends of reform and mergers and acquisitions policy support, China Merger and Acquisition market showing explosive growth in 2014 again, the trading volume and amount both break through history.
China's mergers and acquisitions market in 2014 continued the fiery trend in 2013, the reform of the bonus constantly released in big environment and stimulated by mergers and acquisitions promotion policy, the merger activity and the size of the transaction reach a new high after 2013, called “The carnival of Chinese M & A market "
There are three main reasons for increasing of the transaction activities, but decreasing in the amount of the transaction.
1. During past few years, Chinese enterprise’s overseas mergers and acquisitions focus on large state-owned enterprises, less cases with higher transaction amount. With ever increasing strength, the Chinese private enterprises have become more efficient and more skillful, they are more willing to invest in foreign brands sources, science and technology, and market size as principle part.
2. The majority of overseas mergers and acquisitions of large state-owned enterprises were led by the government in the past, and focused on heavy assets such as energy development, infrastructure construction and machinery manufacturing, the transaction amount were higher. The private enterprises are now more inclined to go out for light assets, high income industry, the transaction amounts are significantly lower than in the past.
3. Developed economies are in the process of economic recovery, the demand for Merger and Acquisition has not been fully released, and the favor of the large scale assets in China has been reduced.