I. Strategic Value Analysis
Strategic value is the main factor to promote the corresponding goal of industrial capital merger or repurchase, which is often determined by the irreversible strategic goal of industrial capital and the almost irreplaceable unique resources of listed companies. This is the most important aspect we consider. Unique resources are often the primary goal of M&A. Some resources such as real estate, chain business and minerals are often irreplaceable, and other industrial capital trying to enter this industry must or almost must be cut through acquisition. However, it is difficult for the major shareholders who have already occupied this resource to give up at will, and may take the form of share repurchase to strengthen control.
This situation mainly refers to some unique assets with obvious monopoly, such as stores, land, channels, brands and minerals of listed companies.
Second, the comparison between replacement cost and market value
For industrial capital, how to acquire industrial capital as low as possible is also a key consideration. Then by comparing and analyzing the gap between replacement cost and market value, we can clearly analyze this factor. The lower the market value compared with the replacement cost, the more attractive it is to industrial capital.
The substitution cost of different industries is quite different, so different coping strategies need to be adopted according to different situations.
Third, the industry situation analysis
Policy threshold and industry concentration are the main factors that determine the activity of industry mergers and acquisitions.
1) policy threshold
For example, mergers and acquisitions in the financial industry are not easy to happen, which is closely related to policy control. Under normal circumstances, the cost of M&A is often high in industries closely related to the country and family planning, and it is also difficult to do M&A under the market behavior mode. The M&A problem involves many complicated factors and is very uncertain. However, due to the lack of pressure of control competition and contention, the enthusiasm of the controlling party for repurchase will be weakened accordingly.
2) Industry concentration
The lower the industry concentration, the more likely the competition between M&A and controlling shares will occur, and vice versa.
Four. Shareholders and capital structure
Ownership structure and shareholders are often important factors that determine M&A and repurchase activities.
1) ownership structure
The more decentralized the ownership structure, the easier it is to produce various mergers and acquisitions, and the easier it is to stimulate major shareholders to buy back. On the other hand, it is generally more difficult for listed companies with relatively concentrated equity or high concentration of concerted parties to conduct mergers and acquisitions in the secondary market, and the transfer of control rights may be mainly based on equity agreement transfer. In addition, major shareholders who have a repurchase commitment or express their willingness to repurchase must also pay attention.
2) Analysis of other major shareholders
The shortage of major shareholders' funds, or the general shortage of industry funds, may lead to the willingness of major shareholders to introduce new strategic investors, or weaken their resistance to vicious mergers and acquisitions, thus attracting the attention of other industrial capitals.
3) Shareholders' behavior
The historical record of selling or increasing holdings, and analyze the views of major shareholders on the company's industrial value from the side.
4) Capital stock scale
Generally speaking, the more industrial capital a listed company with smaller share capital can acquire, the lower the capital cost required for M&A.. Therefore, under the same conditions, small-equity listed companies are more likely to be merged or repurchased. In particular, some valuable business leaders of small and medium-sized boards are often more likely to be acquired.
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