Case Analysis Of Financial Issues In JD Company M&A Of QL Cement Company

Become the giant industry is the common goal of every company, through mergers and acquisitions can help the company to grow and develop, enhance the competitiveness of enterprises. The smooth progress of mergers and acquisitions is conducive to the optimization and restructuring of enterprises and the rational use of resources. Unsuccessful M & A not only improve the financial situation of enterprises, but also will make the two companies have suffered a heavy blow, which requires us to pay attention to. Cement as an integral part of the building materials, for the rapid development of China’s economy has made outstanding contributions. Recently, however, as China’s cement industry chaos bunch, resulting in the excess capacity, per unit of production, high cost and environmental pollution, industrial concentration degree and low problem. Mergers and acquisitions can effectively eliminate backward production capacity, reduce unit cost, to raise the level of industry concentration, promote the formation of scale of the cement industry and therefore mergers and acquisitions of the cement industry in our country is imminent.This paper mainly adopts case analysis and literature research, through a large number of relevant literature search, of mergers and acquisitions to form a scientific knowledge, the combination of qualitative analysis and quantitative analysis, the case data integration. Taking the case of JD cement M & a QL cement as the research object, this study analyzes the financial problems in the process of M & A, and analyzes the reasons for these problems. Sum up the experience and Enlightenment of JD cement company merger and acquisition process, provide reference for the company after the merger and the related financial problems of cement industry.This paper is divided into four parts:the introduction part expounds the background and significance of the study, introduces the characteristics and development status of the cement industry, and important significance in the process of the development of the enterprise merger and acquisition; case body part first briefly introduced basic situation of two in the case of the enterprise, then in time order lines, through four cases:add fuel to the flame, twists and turns, backfire, but break up, introduced the background, motivation and process cases of mergers and acquisitions, mergers and acquisitions (M & A) in the presence of financial problems and shortcomings are revealed in the description of the case; the third part of the case analysis is the focus of this chapter. First introduced the related theory, on the basis of the second part of the case, detailed analysis of the JD cement M & M & a high cost, mergers and acquisitions lead to the solvency of enterprises weakened, liquidity liquidity difficulties, financial integration is not in place, financial problems, and in-depth analysis of the causes of these problems: administrative control excessive, weak the role of intermediary organizations, target enterprise mergers and acquisitions difficult pricing, financing difficulty and the lack of effective financial integration. Finally, it is conclusion and enlightenment, summary of the front section of the analysis, it is concluded that the corresponding conclusion, fully aware of the problem, formulate practical and effective measures to deal with. Evaluate of target reasonably in the M & A, pay attention to the debt paying risk, optimize the mode of payment, choose the way of mergers and acquisitions, pay attention to the financial integration after M & A.