Performance And Risk Analysis Of M&A Between JDSN And BBMG

The cement industry is an important part of China’s national economy.Due to the current characteristics of low industrial concentration and overcapacity in China’s cement industry,it is difficult for the cement industry to develop steadily in today’s fiercely competitive market environment.For cement companies,mergers and acquisitions not only help to optimize the allocation of resources,but also help to reduce invalid competition.The company’s financial performance is better,so as to achieve high-level professional development and enhance comprehensive competitiveness.Due to the low concentration of the cement industry in North China and the serious overcapacity,JDSN and BBMG have suffered consecutive losses as leading local cement companies.Under this background,from 2017,JDSN and BBMG have achieved through mergers and acquisitions.Turning losses into profits,the operating conditions have improved significantly,and this M & A case has research value.This article combs the relevant theories of M&A and reorganization,summarizes the domestic and foreign relevant literatures on the motivation,performance and risk of corporate M&A and reorganization.On this basis,the research ideas and framework of this paper are established.First of all,it focuses on the development overview of JDSN and BBMG,summarizes the policy background and industry background of M&A and reorganization,and sorts out the long-term and multi-stage complex reorganization of JDJY’s M&A process and analyzes its innovative solutions.It is hoped that it can provide a reference for the design of subsequent mergers and acquisitions of cement industry enterprises.Then,the impact of JDJY’s M&A on financial performance and non-financial performance is analyzed,and the possible risks are studied.The four financial performance dimensions of debt solvency,operating ability,profitability and growth ability were analyzed before and after reorganization.After removing the influence of the industry over the same period,the conclusion was drawn that the financial performance of each dimension of the joint venture company after the merger and acquisition was significantly improved.At the same time,it is concluded from the non-financial performance analysis that mergers and acquisitions have increased regional market share,and the two parties have shared brand resources.However,M&A and restructuring also increased pressure on the company to reduce capacity,increased monopoly risk and increased management difficulty.In the context of supply-side reforms and state-owned enterprise reforms,this article specifically proposes the following suggestions: First,companies must strictly control new production capacity and resolutely remove backward production capacity;Second,they must take into account social effects in the process of capacity reduction;Third,the government should increase Promote the reform of state-owned enterprises,actively introduce policies and regulations,and encourage the mergers and acquisitions of stateowned enterprises related to backward production capacity.Fourth,the industry should play a coordinating role,and enterprises must also actively promote reasonable merger and acquisition activities and scientific merger and acquisition planning.