Motivation Analysis And Performance Study Of Company DH Merging Company ZG

After entering the new century,all industries in our country have developed by leaps and bounds.In order to expand their market share,many companies have adopted the strategy of low price competition,but this kind of competition will inevitably inhibit the development of the company.It is difficult for the company to make a big profit in the production activities,and the accumulation of capital slows down.In the long run,this way of competition is tantamount to self-binding,causing inestimable losses to the future development of the company.As a result,many companies are more inclined to expand their competitive strength through mergers and acquisitions.How to choose and deal with mergers and acquisitions has become a difficult problem for the development of companies in the new era.In this paper,DH Company is selected to acquire ZG Company.This paper analyzes the motivation of the merger and acquisition,and evaluates the M &A performance of the company from the financial and non-financial point of view.This paper first introduces the current situation of M & A at home and abroad,and sums up the relevant theoretical knowledge as the theoretical basis of this paper.Secondly,it makes an in-depth analysis of the motivation of the merger and acquisition of DH Company.Finally,according to the changes of financial and non-financial indicators before and after the merger and acquisition activities of DH Company,the performance of the merger and acquisition of DH Company is evaluated.Based on this,some enlightenments of M & A are given.Based on the analysis of the motivation and performance of DH M & A,this paper draws the following conclusions and enlightenment.Conclusion:first,the motivation of DH’s merger and acquisition of ZG company has certain goal and pertinence.Second,from the point of view of financial index,DH company reduces the financial risk of DH company after completing the merger and acquisition business.Third,from the non-financial point of view,DH company after the acquisition of ZG company to increase the market share of enterprises in finance,military and police,and in these two industries almost in a monopoly position;Fourth,the merger and acquisition business of DH Company is a successful case.Inspiration: first of all,enterprises must settle down when choosing M & A companies.In line with the characteristics of the industry and enterprise development goals.Secondly,after the merger and acquisition,we should maintain the characteristics of the enterprise.Finally,after mergers and acquisitions,enterprises should strictly control their own cash flow.