A Case Study That Wuhan Kattor Industry Acquires Zhejiang Hejian Heavy Industry

The enterprises in the NEEQ market have played an irreplaceable role on the national economic development.In recent years,these enterprises show a good trend of vigorous development.Mergers and acquisitions are the important way for them to become bigger and stronger.Therefore,it is of great practical significance to explore their motivation of mergers and acquisitions.Besides,correctly evaluating the corresponding behavior can provide some principles,basis and strategies for NEEQ companies' development.It is also very critical for instructing these companies to merge better.This paper first introduces the background,significance,literature review,the structure and innovation of the article.Then it illustrates the M&A theories used in this article.Moreover,it introduces the backgrounds of Wuhan Kattor Industry Co.,Ltd and Zhejiang Hejian Heavy Industry Co.,Ltd and the whole process and characteristics of this M & A.In the forth part of the article,it analyzes the main motivations of this M & A and uses the differential efficiency theory,the value chain model and the Boston matrix to identify the management synergy,operating synergy and financial synergy respectively.Furthermore,synergies are calculated as well.Subsequently,this paper compares the financial performances before and after the acquisition and reveals the relevant reasons.Through the case study of this mergers and acquisitions,this dissertation finally gets the following inspirations to other companies in the NEEQ Market who want to implement M &A in the future.These inspirations include that those companies need to select the right time,find the suitable target,execute the M & A in a reasonable way,make sufficient expectations before the M & A and integrate target firm into acquiring firm carefully.In addition,this paper also makes some proposals which are beneficial for the further development of those companies,including that they had better implement mergers and acquisitions in the NEEQ Market because their performances would be improved faster and they should refinance after the mergers and acquisitions.