The dawn of international banking has already sparked some of the most well known mergers in the financial industry. Following the recent merger waves of the major developed economies, Taiwan¡¦s industry also engages merger and acquisitions to pursue external growth. Firms may merge for various reasons and generates totally different result in shareholder¡¦s wealth. Thus, capture the factors which drive the merger activity is very critical issue to all the participants of Taiwan¡¦s equity market. The objective of this study is to analyze the determents of target selection in the merger and acquisition activity in Taiwan¡¦s financial industry. The subject what the research are going to study and development. There is acquired Cooperative Association what characteristics are owned. Logit regression is utilized to investigate a sample of 12 listed firms which engaged mergers after the government has passed the Financial Merger Institutions Law over the period from 2000 to 2007. Consistent with literature of merger and acquisitions, the empirical result suggests that the firms with weaker debt structure, good loan quality and Capital Adequacy, to become good targets.