The Research For Financial Integration Of H State-Owned Enterprise Merger And Acquisition Of S Private Enterpise

Mergers and acquisitions are important means for corporate asset restructuring and rapid expansion.European and American countries began their first wave of mergers and acquisitions at the end of the 19 th century,creating monopolistic enterprises through horizontal mergers and acquisitions.Over the next 100 years,developed countries have undergone multiple waves of mergers and acquisitions to screen,restructure,and integrate to form more competitive modern enterprises in the market.Chinese enterprise mergers and acquisitions began in the 1980 s,initially concentrated among state-owned enterprises led by the government.Subsequently,with the improvement of the capital market,listed companies began to participate in mergers and acquisitions,greatly promoting the development of the mergers and acquisitions market.Since 2020,with the implementation of the "Three Year Action Plan for State owned Enterprise Reform(2020-2022)",the number of mergers and acquisitions involving state-owned enterprises in China has increased.Currently,China’s M&A transaction volume ranks second in the world.State-owned enterprises have advantages such as sufficient funds,good credit,abundant resources,and standardized management.Private enterprises have advantages such as rapid market response mechanisms,flexible performance incentives,and efficient personnel management.The combination of both parties should have a good synergistic effect to promote the rapid development of both parties in the merger and acquisition.However,in reality,there are frequent cases of merger and acquisition failures due to integration issues.In particular,state-owned enterprises attach great importance to financial management,and in the integration stage,most of them prioritize finance.Financial integration is a systematic integration that requires complex and comprehensive integration work,which is crucial for the integration effect after mergers and acquisitions.This paper mainly takes the M&A of state-owned H company to private S company as an example.After the M&A,H company plans to achieve the purpose of financial integration management,promote the implementation of corporate strategy,improve financial monitoring ability,and achieve synergy,and on this basis,establish an integration organization,develop an integration plan,select an integration model,and determine the integration content.Through the evaluation of the integration effect of this merger and acquisition,the acquiring party has basically achieved the integration goal,and can achieve integrated management.Financial management effectively supports the enterprise strategy,improves financial monitoring capabilities,etc.,but does not significantly improve profitability.Through the analysis of the integration effect,this article summarizes the problems in the financial integration of H Company after its merger and acquisition,and then puts forward opinions and suggestions.This article conceptually defines the scope of state-owned enterprises acquiring private enterprises,analyzes the impact of corporate strategy,corporate culture,and corporate control capabilities on financial integration,and sorts out the two important links of due diligence and implementation of financial integration plans.Based on a case study,the special requirements for governance structure and management functions of state-owned enterprises after mergers and acquisitions were analyzed.Four suggestions were put forward to address the issues of ineffective collaboration between financial integration and other subsystem integration,lagging management improvement and difficulty in matching the company’s business expansion,and low asset efficiency in the case study.Through this paper,I hope to provide financial integration related references and references for future researchers and suitable M&A integration enterprises.