Research On The Motivation And Performance Of Private Enterprises’ Merger And Acquisition Of Military Enterprises

As the military-civilian integration policy becomes a national strategy,the barriers of the military industry are further reduced,and the state encourages non-public ownership of the economy to enter the monopoly industry represented by the military industry.Under the background of this era,private enterprises have more opportunities to enter the military industry,and mergers and acquisitions have become the main means of capital operation for private enterprises.In recent years of capital market mergers and acquisitions,military assets have become popular targets due to their own high thresholds and relative closure.This paper chooses Anhui Truchum as the case study object.Firstly,starting from the military mergers and acquisitions of private enterprises,it analyzes and combs the M&A policies and industry characteristics in the military industry,as well as typical cases of military M&A in private enterprises.Secondly,this paper is based on the two military mergers and acquisitions of Anhui Truchum,it elaborates on the process and plans of the two mergers and acquisitions.Thirdly,it analyzes the motivations of Anhui Truchum’s M&A from both strategic and economic aspects.Then,starting from shortterm performance and long-term performance,analyze the performance of Anhui Truchum’s Military Industry M&A,and summarize the experience and shortcomings of Anhui Truchum’s Military Industry M&A.Finally,draw conclusions and enlightenments based on the above analysis.The research found in this paper:(1)The strategic motivations of Anhui Truchum’s military industry mergers and acquisitions mainly include the expansion of militarycivilian integration strategy,breaking the high barriers of the military industry,and seeking business transformation;economic motivations mainly include reducing transaction costs,improving profitability,and creating shareholder wealth;(2)After the acquisition of Anhui Truchum,effective integration was carried out,which brought excess profits to the company’s shareholders,formed financial synergy,and promoted the development of national defense and military industry.(3)The short-term effect of military-industrial mergers and acquisitions of private enterprises is obvious,and longterm planning is lacking.The research in this paper provides reference and experience enlightenment for the capital operation of listed companies,and also provides practical guidance for the supervision of the supervisory market.