Studying On The Case Of GC Group M&A HQ Group

Abstract:Corporate merger and acquisition is an important way for resourceallocation and a significant method for corporations to achieve the goal of rapiddevelopment. GC Group is restrained by the ‘bottleneck’ factors from a variety ofaspects of the resource even though its major works in real estate development arefacing good strategic developmental opportunities. So it is necessary for GC Group togain critical resources, enlarge financing tunnels, realize diversified operation, andfurther achieve the strategic goals. As a joint stock enterprise, HQ Group possessesmany characteristics and advantages, such as the complete reform of the propertyright system, internal control system of perfection, rich strategic resources and thebroad prospect of the market. From GC Group’s point of view, the corporate mergerand acquisition is in consistence with strategic developmental layout, and we can seethat the company will reduce the operational risk, receive a source of profit with highquality and land source, and even gain platform of logistics operation if the merger issuccessful. Based on these reasons, we deem that the merger is economical andimplemental.The essence for stock right acquisition is transfer, thus, what the GC Group’smerger should focus on the three critical links which consist of the investment onfeasibility, price negotiation, and the agreement. In the process of merger, the GCGroup earnestly analyzes and assesses the possible potential risk in this merger, worksout and takes a series of measure of efficiency. GC Group treats the merger to HQGroup with four principles: Firstly, the purpose of merger must be specific and theplan must be born of deliberation; secondly, the fixing a price is fair, reasonable andfacile to be paid; thirdly, value orientation is clear with win-win thinking angles;finally communicating is fully when cooperating. From the aspect of the result, themerger is completely successful since the GC Group applies correctly the stratagem and operational methods to this merger, which lead to win-win between the GC Groupand the HQ Group.This paper uses the case study method to analyze the logic decision makingdeeply and processes of implementation when the GC Group merges the HQ Group,and summarizes successful experience. The innovative significance of this caseanalysis is that we turn the abstract theory into the concrete analysis and attainedification and introspection from the realistic case based on the merger’s practice.This paper hence differs from common academic research paper as the study containsstrong real meaning and can provide the reference and a mirror to the same kind ofcorporations.