A Case Analysis On Convertible Merger

Enterprise merger and acquisition is a common behavior of the economy in the world. It has become a means and manner for enterprises to expand scale, adjust industrial structure and improve operation and management. Stock-exchange merger is an innovation means of merger under market economy condition, and provide a new mentality to the listed enterprises which are looking for low cost expansion, because it doesn’t need large amount of funds, the combined company can keep their owner’s equity, continue to share the company’s future growth, to obtain growth earnings of the stock. Meanwhile, the M&A also has the role of tax avoidance and many other advantages, it is a listed company to provide low-cost expansion a new way. Amalgamation options from the convertible to the implementation of a complex process, involving the interests of the parties concerned, if ill-conceived on a certain part will often result in failure of the entire acquisition process. Group restructuring against the backdrop of the current key Amalgamation embodied in equity allocation of the controlling shareholders and other minority shareholders. Especially the exchange ratio set other purposes directly related to the success of the merger, worthy of further study.Midea Group convertible merger Midea Electric Appliances event is model of beneficial exploration about non-listed companies convertible merger listed company, which has remarkable demonstration effect.M&A is an important means to enhance the overall competitiveness of enterprises, but also to promote Chinese enterprises into the international pattern of the-economy as soon as possible, which has important practical and theoretical research value. This paper analyzes the background to the case, using the case study method, combined with the theory of convertible research at home and abroad, a detailed analysis of corporate motivation and convertible Convertible M & A activity in the selection and payment of the exchange ratio reasonable price, while from various angles to make the evaluation, to provide some theoretical references and suggestions for the future of non-listed companies standardize practices convertible merger listed companies.This paper is divided into three chapters, the main contents are as follows:The first chapter introduces the basic situation of the Midea group and Midea Electric Appliances, basic scheme of the specific process of merger and acquisition. The second chapter describes motivation of the Midea Group convertible merger Midea Electric Appliances, and to the process of Stock-exchange merger of the convertible price, rationality and the value of the effect of the exchange ratio of the convertible after a detailed analysis and evaluation.Chapter three for the case studies drawn from the conclusions, combined with a representative present case, and puts forward responsive strategies for the merge and acquisition of Chinese enterprises...