Research On Financial Integration In Cross-industry M&A Of The Kaiyuan Company

In recent years,Merger and acquisition activity frequently appeared in China,and becomes the first choice for many companies to implement transformation or expansion;however,a large number of failure cases have revealed that the integration of enterprises after mergers and acquisitions is not valued,systematic,and incomplete,which has greatly negative effects on the goals realization of mergers and acquisitions.Financial integration,the foundation and hub of various integrations,has a huge impact on the overall integration realization.Therefore,after merger,it is the primary issue that addresses how to carry out scientific and reasonable financial integration to achieve the docking of the financial systems of both parties and optimize the allocation of resources.Based on a review of domestic financial integration related theories,this article makes a detailed analysis of the content,model,and integration effect of financial integration.Take a cross-industry merger and acquisition activity between the manufacturing company--Kaiyuan co.Ltd and an education enterprise as an example,firstly,the paper clarifies the development process,the merger process,the merger motivation,and the financial integration process of the merger and acquisition;secondly,the paper makes a detailed analysis on Kaiyuan's post-merger integration measures,including unifying the financial goals of the two parties,restructuring the financial organization,rationalizing the allocation of financial personnel,improving the accounting process and the degree of financial informatization to achieve the docking of the financial systems of the two parties,strengthening funds Control and respond to the collection of entrusted accounts and reasonably plan high-quality assets and non-performing assets to integrate existing assets,resetting the weight of performance evaluation indicators and implementing equity incentives to achieve the organic unification of performance evaluation and incentive systems;Finally,through the evaluation methods of relevant financial indicators,non-financial indicators and DCF method,pointed out that Kaiyuan has achieved significant growth in the aspects of profitability,shareholder wealth,market share and core competitiveness after a series of integration measures.In conclusion,during the financial integration process,Kaiyuan Company adhered to the concept of systematic integration,rationally planned the financial organization and financial staff,and with the combination of the particularity on cross-industry mergers and acquisitions,focused on the integration of existing assets,which is worth learning by other relevant enterprises.Nevertheless,in the follow-up financial integration process,Kaiyuan Company should notice the risk of dropping capacity of debt repayment and strengthen the control on marketing expenses;moreover,Kaiyuan Company should also pay attention to the interaction between financial integration and other integrations for a better financial synergy achievement.Based on the relative research,the paper that applies the theory of financial integration to the financial integration practice of Kaiyuan after mergers and acquisitions,and combines the practice of cross-industry mergers and acquisitions has built an effective financial integration approach with integration measures as the main body.Therefore,the research in this paper not only can enrich the theoretical basis of financial integration,but also can provide relevant enterprises with practical experience for reference.