Research On The Synergy Effect Of Private Listed Companies Merging Military Enterprises

Since the State Council first allowed non-public capital to enter the field of national defense science,technology and industry construction in 2005,the central government has continuously promoted the development of civil military integration and deepened the reform of national defense and the military.With the improvement of relevant management system of military M & A in capital market,more and more private enterprises begin to pay attention to military enterprises.Meanwhile,with the advent of the era of "Internet plus","big data" and "5G",traditional industries such as manufacturing,textile and chemical industries have gradually entered the competition of Red Sea because of the changes in the times,capital profit margins and technological innovation.The rise of Internet and other emerging industries is accompanied by the emergence and development of the software and hardware that support its development.Therefore,many traditional enterprises begin to develop towards high-tech fields such as chips and UAVs.As a traditional basic chemical raw material listed company that has experienced bankruptcy reorganization and special treatment of stock trading of listed companies,Hangjin technology also faces the same problems and opportunities.On the one hand,the main business of Hangjin technology is relatively single,greatly influenced by the raw material market,and its market share is relatively stable.Although the main business continued to rise,the level of profit margin was low and the development space was small.On the other hand,Hangjin technology's cash flow is stable,the current ratio is high,the asset liability ratio is relatively low compared with the industry average,and its own M & A conditions are good.Therefore,in the wave of M & A into the military industry.Although M & A is often blocked due to the deviation of M & a mode selection,it finally completes the M & A activities in the form of cash acquisition,and achieves a good sustained synergy effect.Firstly,this paper reviews the literature of private enterprise M & A and synergyat home and abroad.Secondly,it defines the related concepts of military enterprises,the scope of this study and other core contents,and combs the theoretical basis of this paper-the theory of enterprise merger and acquisition,the theory of transaction and the theory of coordination.After that,it briefly expounds the evaluation methods of three effects of enterprise synergy,namely management synergy,operation synergy and financial synergy,and the selection of relevant indicators,which establishes the basic analysis framework for the subsequent case analysis.Then it analyzes the background,current situation and motivation of private enterprises' Merger and acquisition of military enterprises.After that,the case of Hangjin technology's acquisition of Changsha Shaoguang and Weike Electronics was analyzed in multi-dimensional and multi-year way,including the background of the acquisition,the relevant situation of the acquirer and the target of the acquisition,the process of the acquisition,the motivation of the acquisition,etc.,focusing on the management coordination,operation coordination and financial coordination,combining the relevant financial and non-financial data,The management synergy,operation synergy and financial synergy are analyzed.As a result,the following conclusions are drawn: first of all,the synergy effect of private enterprises' Merger and acquisition of military enterprises is mainly concentrated in the aspect of operation synergy.Most of the private listed companies in the merger and acquisition activities are in the traditional basic industries.By means of merger and acquisition,they can march into military enterprises,on the one hand,reduce the transformation cost and speed up the transformation speed,on the other hand,the advantages of military enterprises can have a greater impact on the original enterprises This is a good choice for this kind of private enterprises.Secondly,the management synergy of private enterprises' Merger and acquisition of military enterprises depends to some extent on the mutual integration of the management after merger and acquisition.The effect of management synergy in the current period of merger and acquisition is not strong.It will depend more on the mutual integration,coordination and continuous running in of the management methods after merger and acquisition of both sides,so as to produce a longer-term management synergy.Finally,it is found that the "military civilian integration" policy promotes the financial synergy effect of private enterprises' Merger and acquisition of military industrial enterprises.Because the promotion of the national "military civilian integration" policy and the improvement of the relevant system of the securities market,the private enterprises after the merger and acquisition of military industrial enterprises can get more market attention and confidence,the financing ability is enhanced,and the financial synergy effect is enhanced.At the same time,because some military enterprises are high-tech enterprises,under the support of various policies,they can get certain tax saving effect in the future development.Finally,this paper puts forward some suggestions for the private listed companies to merge and acquire military enterprises.First,we should make clear the strategic objectives of the enterprises,not blind to the military industry.Second,we should pay attention to the way of merger and acquisition,and at the same time,we should effectively reduce the process of merger and acquisition.Finally,we should pay attention to the synergy effect after merger and acquisition.The end of merger and acquisition is just the beginning of synergy effect According to the strategic objectives of the enterprise,the decision-makers should constantly adjust the operation and management mode,coordinate the issues of both sides of the merger and acquisition,so as to play a greater synergy effect.