Research On ZT Decoration Company’s Merger, Acquisition And Reorganization Strategy

Since the reform and opening up, especially after the accession to the WTO,China’s economic rapidly developed, the requirements of the people’s standard of livingis increasing day by day, and more and more people enjoy the benefits of economicrapid development. Live in big house, good house, has become the public goal, and thebuilding decoration industry in our country has achieved unprecedented development inrecent years. At the same time, the architectural decoration industry also ushered in theround of the “fittest” wave of building decoration companies in the "11th five-yearplan" period which reducing from19m to15m. In order to further development, andstand out in the industry, the construction decoration industry M&A strategy isincreasing. Through the implementation of the strategy of M&A, the enterprise couldnot only improve their development to a certain extent, but also optimize their businessmanagement, which would have very important significance for long-term developmentof the construction decoration enterprise. Based on this background, this paperresearches on ZT decoration company’s merger, acquisition and reorganization strategy.This paper takes ZT decoration company as the research object and have a morein-depth analysis and research on the formulation and implementation of buildingdecoration enterprise’ M&A strategy. This paper’s specific work is as follows: First, thispaper summarizes and analyses on the M&A strategy and the related literature at homeand abroad, and points out the deficiency of existing research; Second, based on thestrategic reorganization involves the definition of basic concepts, this paper mainlyexpounds the related theories of enterprise’s M&A strategy. Third, according to thedevelopment of the ZT decoration company, analyzing the environment of ZTdecoration company’s M&A strategy. Fourth, from the two aspects of vertical andhorizontal merger, this paper make ZT decoration company’s M&A strategy. Fifth,according to the M&A strategy from organization structure, cost management, talent,brand and so on four aspects proposed the concrete implementation and safeguardmeasures.In this paper, through the research on the ZT decoration company’s M&A strategy,strategy and planning is a dynamic process, to conform to the principle of economy,compliance legitimacy and value maximization. ZT decoration company’s strategy isvertical and horizontal merger, acquisition and reorganization road of merger, acquisition and reorganization. Horizontal merger, acquisition and reorganization roadto ZT decoration company should take around the small and medium-sized enterprisesas the core integration, to achieve rapid preempted market, and expand the scale of theoperating purposes; Vertical merger, acquisition and reorganization road to step by stepimplementation: The first step is to forward integration, integrate the suppliers toachieve the purpose of saving the cost of raw materials; The second step is to verticalintegration, merger, acquisition and reorganization of enterprise, to household to expandtheir business and reduce risk. Hope to do the paper work for M&A strategyformulation and implementation of related companies could provide the beneficialreference.