Case Study On Financial Performance Of BG's Merger With WG

The development of the industry is crucial to the development of the national economy,and the development of the industrial industry is related to the development of the national economy.The government has also issued a series of policies to guide the sound development of China's industrial industry.As an important part of industrial industry,the healthy development of steel industry is very important.With the world economic recovery less than expected,as well as the increasing domestic economic pressure,the development of the steel industry is deteriorating.Problems such as overcapacity,low industrial concentration,and sharp contradiction between supply and demand continue to emerge.Under the pressure of widespread losses in the iron and steel industry,the government vigorously promotes the reform of the iron and steel industry,with "capacity reduction" as the primary task.It is proposed to optimize resource allocation and improve industrial structure through M & A.More and more iron and steel enterprises conform to the development law of the industry,and have joined the upsurge of enterprise merger and acquisition.However,the blind merger and acquisition of enterprises may not alleviate the current situation of turning loss into profit,but will aggravate the situation and even lead to bankruptcy.By analyzing the financial performance of M & A,this paper can not only avoid the blind development of M& A,but also provide valuable experience for the standardization of M & A activities in the iron and steel industry.This paper first introduces the relevant background and theoretical basis of M & A,enumerates the form,main motivation and research methods of M & A financial performance.Combined with the current environment of M & A in iron and steel market,this paper analyzes the whole process of M & A of BG Company and WG Company,which is the successful case of M & A in iron and steel industry.After introducing the basic situation and motivation of M & A,stock price fluctuation is taken as the short-term performance analysis of this M & A behavior.Then,using the financial index table analysis method,this paper studies the different aspects of measuring the performance of the enterprise,and analyzes the profit,debt service,operation and development of the enterprise respectively.In addition,The(EVA)analysis of economic value added is also used to reflect the financial performance effect of M & A activities of the two companies more comprehensively and objectively.Finally,according to the influence of M & A activities of BG Company and WG Company on financial performance,this paper summarizes the experience and enlightenment of M & A activities,and provides some reference for the development of M & A and industry of similar companies in the future.