Study On The Motivation And Performance Of Comens New Material's Acquisition Of Huasen Plastics

Under the intensive encouragement policy of government agencies and regulators,mergers and acquisitions(M&A)have shown explosive growth,and the amount of M&A transactions and the number of mergers and acquisitions have been increasing.A large number of frequent M&A activities of listed companies not only bring about the improvement of market value,the increase of performance and the expansion of volume,but also accompany with a variety of hidden dangers,such as the sharp increase of goodwill,the impairment of assets caused by the substandard performance of M&A,the high reduction of assets caused by mergers and acquisitions,and so on.This also brings a shadow to the examination and approval and development of subsequent M&A activities of listed companies.On the one hand,mergers and acquisitions are in full swing,the number and scale of mergers and acquisitions are climbing new highs day by day;on the other hand,the goodwill of listed companies in merger and acquisition frequently exploded and their performance changed frequently.In order to improve the success rate of M&A and reduce the negative impact of M&A,the research and evaluation on the motivation and performance of M&A listed companies will have guiding significance for the choice of M&A scheme and post-merger project integration of listed companies in the future.This paper evaluates and analyzes the above situation through the empirical study of the acquisition of Huasen plastic by Comens New Materials.In this paper,the concept and classification of M&A are defined,and the main evaluation methods of M&A performance and the related theories of M&A are sorted out and summarized,and then the typical case of Comens New materials M&A of Huasen Plastics in China is selected to analyze the reasons for the strategy of starting M&A.This paper holds that there are four reasons for the acquisition of Huasen plastic by Comens New Materials,one is the integration of resources and the formation of synergy;the second is to improve the industrial layout and promote the strategic realization;the third is to improve the operating scale and profitability of listed companies through the acquisition of high-quality assets;and the fourth is to achieve the core employees and the long-term development of the company,to ensure the company's future performance growth.Based on the public data and industry research materials,this paper makes a comparative analysis of the financial and non-financial indexes before and after the merger and acquisition of Comens New Materials,and studies the influence of the merger and acquisition behavior on the performance of the enterprise.In this paper,itis considered that from the analysis of market effect,mergers and acquisitions can boost short-term stock prices,and the short-term excess cumulative rate of return rises obviously.Through the analysis of the financial effects before and after M&A,it is found that the solvency of Comens New Materials is still strong after M&A.at the same time,the operating ability is obviously improved,the profitability is greatly improved,and the space for development and growth is increased.Through the analysis of non-financial performance before and after M&A,the new materials department of Comens New Materials after M&A The research and innovation ability has been obviously improved,and the stability of the talent team has been improved.According to the current data,on the whole,the merger and acquisition of Huasen plastic by Comens New Materials has further improved the industrial layout of the company,and the performance of the company has also been greatly improved,which is a successful case of mergers and acquisitions in the current market.Finally,combined with the case of Comens New Materials merger and acquisition,this paper gave some suggestions on the acquisition and merger of fine chemical listed companies.First,listed companies should combine the development cycle of the industry to carry out industrial layout.After enterprises enter the capital market,they should reasonably formulate industrial development strategy,timely realize industrial layout and expand product line optimization market system through industrial mergers and acquisitions,which can add new kinetic energy to the development of enterprises,effectively reduce or avoid the impact of industry cycle fluctuations,and bring greater prospects for the development of enterprises.Second,through the integration of M&A resources,effectively play a synergistic role.Finally,according to the characteristics of fine chemical industry,listed companies should choose M&A target.We should attach importance to the qualification threshold and look for the target of high quality mergers and acquisitions.Before carrying out mergers and acquisitions,enterprises should carry out full due diligence,understand in detail the qualifications and management experience of enterprises in production and operation,especially in safety and environmental protection,and select high quality enterprises with perfect qualifications in management norms,for the motion on promoting the development of enterprises.