| Since the end of the 19th century, Mergers and Acquisitions (M&A) has attracted more and more attention of the Theory and Practice Communities. Results of relative theoretical studies flourishing, wave of M&A has greatly promoted the adjustment of the industrial structure and optimized the allocation of resources, and many enterprises are also using this approach to achieve the growth dream. With the country's industrial structure adjusting and enterprise competition intensifying, more and more enterprises in China are beginning to use this form of low-cost expansion. However, compared with western countries, China's research and operation in M&A is still at the initial stage, so how to improve the success rate of M&A has become an urgent major issues to study and solve.TianLong Group mergers Blue Group" was-an acquisition of specific cases personally involved in. In this paper, firstly starting from the meaning of corporate M&A at home and abroad, I proceeded on numerously introducing the types of business acquisitions, corporate risk, M&A theoretical and practical developments, and conducted the theoretical summary and interpretation and put forward own views. Then, linking theory with practice, I used qualitative and quantitative analysis and comparison method, comprehensively described the two groups including the industry, product, organizational structure, finance, investment projects, the strategy of development. On the basis of in-depth analysis, I analyzed the characteristics of the two groups, their respective advantages and disadvantages, pointed out the urgency of the merger, and put forward specific solutions. Finally, I summarized, analyzed and forecasted the key factors to the merger success, and made recommendations accordingly.Both TianLong Group and Blue Group are state-owned large enterprises. The former operates sound, with excellent financial position and sufficient cash flow, but because of its monopoly in salt industry, the space of market growth is small. It must enter into a new industry so as to be stronger. The latter facing to competition and other factors in pesticide industry, it operates difficultly with relatively tight fund. The subsidiary Blue Shares almost lost for refinancing because of low profitability. This program is designed to put salts asset of quality from the new group after the merger into the new Blue Shares in the circumstances of the actual control unchanged. We realized the TianLong Group's backdoor listed, and activated the refinancing function of listed company. Based on this, relying on the platform of listed company, we integrated and optimized all kinds of industries including extension of industry in Group. The goal could be eventually achieved to develop commonly in salt, salt chemical and pesticide industries and reach to double win-win.At the same time, through the design and analysis of cases, we can see that this article are providing a new way of thinking for franchise enterprises and businesses with restructuring troubled listed, for the reorganization of enterprises under the same actual control person, for the integration among enterprises with weak industry association, and to avoid stock price volatility in the transfer of holding power of listed companies. |
