A Case Analysis On M&A Of Yanbian Road

The enterprise carry out expansion by merger way, and because of its the special advantage, therefore it is a kind of expansion strategy that western enterprise usually adopt. Growing history that overseas big enterprises as well express that they grow up principally by merger way. In the course of China turning to market economy system from plan economy system, there have already emerged a lot of advantage enterprises which have stronger expansion desire now, and would like to proceed merger expansion under the present advantage term. In fact, there is already a lot of advantage enterprises in China that successfully pass merger means, and realizes low cost fast expansion. And even enterprise which pass merger whose successful rate is too lower, a lot of enterprise's merger expansion are failure. Practice demands the valid theory leading. Under the realistic background, it is first analysis and study the questions on Chinese enterprise merger and expansion problem in the text.Stock-Exchange M&A is still at the primary stage in our country. There are many problem during the process of development, such as choice of accounting methods in M&A process,wealth effect and value of enterprise after M&A . This article bases on the basic concept and development history of M&A, at first analyzes in detail the characteristic and the difference of the two main accounting methods (Purchase and Pooling of Interest), and integrates our present accounting method dealing with consolidation, analyzes the feasibility and necessity of the pooling of interests method being in our country. Finally, using the international accounting rule for reference , puts forward several proposals for the draft of the standards of Business Combination.Confirm the wealth effect of the enterprise through L-G model, The analysis and estimate on the wealth effect of M&A in enterprise is very important .It is magnificent that enterprise make right policy, investment bank improve their efficiencies, government manage efficiently, stockholders and creditors value wealth effect, protect their profits and make right investment decision. Give an example:YANBIAN ROAD M&A GUANGFA SECURITIES. At last, puts forward several proposals based on the present situations and problems of our country.