Research On Financial Evaluation Of Corporation Merger Based On Financial Strategic Matrix

Enterprise merger is one of the ways for enterprises to acquire resources and expand their scale quickly.In recent years,more and more domestic enterprises choose to improve their competitiveness through the merger of enterprises.According to PWC "2017 China enterprise merger and acquisition market review and 2018 outlook",China’s total merger and acquisition in 2016 is 753 billion 500 million US dollars,the highest level of history.However,whether it can improve the financial situation of the enterprise and improve the competitiveness of the enterprise,is one of the problems that the academic and practical circles have been paying attention to.Financial evaluation of enterprise merger is an important way to solve the problem,so is also a research hotspot in the related issues of enterprise merger.The financial strategic matrix combines the advantages of the economic value added and the sustainable growth theory,and measures the financial situation of the enterprise from the two dimensions of the enterprise value and the cash condition.At the same time,the matrix expression makes the manager see the change of the financial situation directly before and after the merger of the enterprise.Therefore,the financial strategy matrix is an effective method for financial evaluation of enterprise merger.This paper reviews the related literature about the performance evaluation of financial strategy matrix and enterprises financial evaluation methods,expounds the theoretical background of the financial strategy matrix,combing with the common enterprise financial evaluation methods and their advantages and disadvantages,illustrate the advantages compared to the EVA evaluation system of other evaluation methods.This paper also point out the three advantage of financial strategy matrix in performance evaluation in the enterprise: It is beneficial to the management to understand the financial situation of the enterprise;It can integrate the advantages of the sustainable growth rate theory and EVA theory;It can give targeted advice to the different financial situation.Secondly,taking the financial data of ZQGAME from 2011 to 2016 as samples and combing with the financial strategy matrix theory,this paper constructs the financial strategy matrix before and after the merger of ZQGAME.Through comparative analysis,it evaluates the financial performance of the case before and after the merger.According to the financial strategy matrix,we can see that after the merger of A,the “value added cash shortage” has changed to a "debased cash surplus",and the value of the company has decreased significantly,showing a derogation state.The change of the cash status of the enterprise also shows that the business situation of the case enterprise is poor,and the growth rate of enterprise management is lower than the rate of sustainable growth.At the same time,based on the evaluation results of financial strategy matrix,this paper compares the financial data before and after ZQGAME merger,from the two dimensions of enterprise value and cash status,and analyzes the reasons for the decline of enterprise value after the merger of ZQGAME.Finally,according to the evaluation results and the analysis of financial strategy matrix based on the case of enterprises,combing with the financial strategy matrix theory,this paper put forward suggestions on the case of enterprises.Through the evaluation of the financial strategic matrix of the ZQGAME merger case,the research finds that:(1)the financial strategic matrix is an effective way for the enterprise to merge the financial evaluation;(2)the financial strategic matrix can provide financial suggestions for the merged enterprises.