A Case Study On M&A Of CD Company By W Company

In recent years,under the requirements of economic transformation and upgrading,the regulatory authorities strongly support enterprises to carry out mergers and acquisitions.In order to achieve industrial upgrading,more and more enterprises choose to achieve scale expansion through horizontal mergers and acquisitions.Emerging industries represent the development of national soft power,and the level of development affects the country's economic status.However,only with fierce competition within the industry and saturation of the market can enterprises improve their competitiveness through breakthrough development.As for the horizontal merger and acquisition among leading enterprises in emerging industries,it will not only bring great influence to stakeholders,but also receive strong attention from all aspects of society.Therefore,it is of practical significance to study horizontal mergers and acquisitions among leading enterprises in emerging industries.Mergers and acquisitions are complex and diverse,and their success depends on many factors,so the effects of mergers and acquisitions should be evaluated from multiple perspectives.This paper adopts the method of case analysis to evaluate the merger and acquisition effect of m & a company W,analyzes the results and puts forward corresponding enlightenment and conclusion.Firstly,relevant literature at home and abroad are sorted out to understand the research status of m&a field and lay a theoretical foundation for case analysis.Secondly,taking the specific practices of W company in acquiring CD company as the research object,this paper introduces the background,motivation,process and post-merger integration of the two companies.Then,according to the relevant indexes of W company from two aspects of financial effect and non-financial effect evaluation of non-financial performance evaluation is to analyze the enterprise m&a results conformed to the m&a motivation,financial performance evaluation is mainly from the profitability,solvency,operation and development ability of these four aspects to choose the appropriate financial indicators to build evaluation system.Finally,the conclusion and enlightenment of this paper are drawn.The research found that W company paid full attention to the intrinsic value of each link in the m&a process,gave full play to the integration value maximization,increased its market share after acquiring CD company,improved its overseas popularity,and improved its profitability and development ability.The research conclusion of this paper can provide reference for the m&a of emerging industries in China.