The Study of Selecting Target Companies Based on the Theory of Information Searching

Abstract

As a way of rearranging social economic resources, M&A (Merger and Acquisition) has been applied widely in corporate operating. It is assumed that the buyer has found a satisfied target company in past researches, but this assumption is not correspond with reality. Because of this reason, researches on searching and screening target companies are less, searching target companies with modern search theory is lack. In order to solve the realistic problems of selecting target companies in the process of M&A, the paper gives a search model of target companies to decide the best searching number by using the tool of search theory and Stigler decision method. And, the paper applies a decision model of multi-objective to look for satisfied target companies, which may be helpful to choose the best target companies of M&A more scientifically