The Case Studies On The Mergers And Acquisition Between Lian Tronics & Eastar Electronic

With the rapid development of China's economy and the gradual development of capital markets,the wave of mergers and acquisitions has become most important means which China's enterprises to expand the scale of operation,transformation and upgrading.Comparing with the developed capital market,the domestic mergers and acquisitions market started late.In the 1990 s,China's capital market entered the stage of rapid development.So far,China's mergers and acquisitions market experience four stages which include Enlightenment,semi-market stage,market stage and the maturity.More than 20 years of development,the government has guided the development of mergers and acquisitions market actively,and made a series of laws and regulations to regulate the mergers and acquisitions.Government established a market-based mergers and acquisitions market which promote the optimal allocation of resources among the capital market.In the early development stage,the main participants are state-owned capital.With the gradual liberalization of the domestic capital market,private capital and foreign capital have become the most active powerful in the mergers and acquisitions market.In 2013 the NEEQ expansion,with relevant laws and regulations continue to appear,the number of listed companies showed a blowout growth.Unlike the public listed companies,the NEEQ companies not only cover more industries,but also emerging industries,such as TMT,new materials and bio-pharmaceuticals.Unique business model and business philosophy makes the NEEQ listed companies with low acquisition costs.In the context of China implements economic restructuring,the public listed companies actively carry out mergers and acquisitions,in order to upgrade business transformation and diversification.The NEEQ will become pool which public listed companies choose the target.Comparing with ordinary merger and acquisition,the NEEQ mergers and acquisitions are unique.The Government made the relevant policies to support,then listed companies acquired NEEQ listed enterprises has become new development trend of mergers and acquisitions market.Although the number of mergers and acquisitions lead by listed companies growth rapidly in recent years,but the blindness of mergers and acquisitions and the impact of government policy made the success rate of mergers and acquisitions continuing to decline.According to the analysis about the relevant cases,we find that the reasons for the failure of mergers and acquisitions mainly due to two aspects.On the one hand,the target selection does not fully consider the relevant factors,on the other hand,the failure of integration after the merger completed.Through studying in many cases in recent years,we found Lian Tronics merges Eastar Electronic use for reference.The innovation of this paper mainly embodies two points,one point is the typical selected case,on the other hand,the research problems are pertinent.First of all,this paper introduces the background and significance of the case,and expounds the research methods and frame structure used in this paper,and combs the research on the mergers and acquisitions of domestic and foreign academic circles.Second,this paper states the development process,business conditions and ownership structure of acquirer and acquired company,and a brief description of the company's acquisition process.Then paper mainly analysis acquisition target selection and integration after the integration of two companies,and draw the corresponding conclusions.Finally,the paper summarizes problems of the case and provide reference for similar merger cases.