Study On Acquisition Of The Yaguang Electronics CO.LTD By Sunbird Yacht Company Limited

So far,cross-industry mergers and acquisitions is becoming a hot spot on the capital market in our country and widely followed,M&A is a new choice for enterprise transformation and upgrading to enter new markets,M&A play a important role in phasing out backward production capacities and promoting the effective integration of resources.however,not all cross-industry m&a can bring wealth increase to shareholders and the improvement of the company value.According to the latest case study on cross-industry M&A,The reasons,the risks and the performance of reorganization in the cross-industry mergers can be concluded.Sunbird acquisition of Yaguang electronics is a case to be studied in this paper.Firstly,the concept and theoretical basis of enterprise M&A are introduced,and then the M&A event is described in detail,including case introduction,M&A scheme,M&A motivation,etc.The M&A performance would be qualitatively and quantitatively researched by using methods of the accounting index analysis,EVA analysis and synergistic effect analysis.It’s can be analyzed that the merger risk may occur in the process of the acquisition by using event study analysis method.At the end of the paper,The experience of this acquisition and the existing problems would be summarized.besides puts forward some suggestions.The following tips are concluded on this basis:1、Pay attention to Leverage effect of m &a funds which is used to M&A.2、 Reasonable layout of the M&A fund’s equity allocation is also very important.3、Avoid the risk of back-door listing after merger and acquisition.