A Case Study Of Jing Yang Company's Merger And Acquisition Of BS Company

The M&A activities among enterprises began in the 19th century.Since then,it depends on the rapid development of the world economy.The theoretical system of M&A is becoming more and more perfect.With the development of M&A activities,the company can achieve the economic development in the same direction,share favorabl.e resources and achieve the economic goal of favorable results for multiple participants.However,M&A activities have two sides.On the one hand,it brings some beneficial effects,such as helping the market to upgrade its structure,reducing the lengthy construction,optimizing the industrial structure and improving the efficiency of resource allocation.On the other hand many companies will face a series of low success rate problems and various risks in the process of M&A and after the activities.In recent years,equity acquisition is the way that most enterprises prefer to choose when they conduct M&A,which can effectively improve the competitiveness of enterprises.In March 2016,JY' company acquired 51%shares of BS com pany with the support of relevant national policies in order to enhance the development strength and expand the development goal of the company.JY company is a county-level state-owned enterprise integrating financial investment,real estate development and tourism resource management.BS company is a professional manufacturer of overhead contact line conductor and catenary cable for electrified railway.This paper mainly uses case study,literature research,on-the-spot interview and qualitative and quantitative m ethods.It will be guided by the sustainable development of JY company and BS company.First of all,combined with the industry development and financial analysis of the two companies,SWOT analysis is used to study the causes of M&A behavior.Second,the process of M&A is discussed in depth,the purpose of M&A is proposed,and the M&a model is studied And the possible strategic risks,transaction risks and integration risks in the process.Combined with the analysis of the indicators of the two companies before and after the merger,it is believed that the merger has generated the business,management and financial synergy.Finally,combined with the case study analysis,it puts forward some enlightenment and suggestions for the merger and acquisition of Chinese Enterprises:reasonably formulate the merger and acquisition strategy and strengthen the merger and acquisition Asset management ensures debt paying ability and pays attention to tax saving effect of M&A.