| Huge state-owned enterprises have played a pivotal role in Chinese economy,so they have also received widespread attention from all parts.Whether the M&A behavior of state-owned enterprises can bring about value enhancement and how to bring about value enhancement are the issues that the academic circles pay more attention to.The theory of enterprise life cycle divides enterprises into different development stages.Enterprises in different stages have different properties.How these properties affect the value changes brought about by business mergers has become a direction for the economic explanation of state-owned enterprise mergers and acquisitions.China CRRC Group Co.,Ltd.is the largest rail transit equipment manufacturer in China,with a monopoly position in the industry and a leading position in technology and scale in the world.CRRC was established in 2015 by the merger of CSR Group and CNR Group.Prior to this,CSR Group and CNR Group successfully completed the introduction,R&D and production of high-speed railway systems,making the company enter a new development cycle.In addition,the two have produced fierce competition in various domestic and international markets.They reflect the typical changes in the life cycle of enterprises and the changes in the combined value of state-owned enterprises,so this paper chooses this case as the research object.Based on this,this paper takes the enterprise life cycle theory as a research perspective to evaluate the enterprise value of the case of the merger of CRRC Group.After expounding the research background and research significance of this research,this paper mainly sorts out the domestic and foreign research involved in this case from four perspectives: enterprise life cycle theory,enterprise mergers and acquisitions,state-owned enterprises and China’s rail transit technology development.After that,this paper introduces the case,and expounds the history of CRRC,the market environment it faces,and the merger and acquisition process.In the next section,the paper evaluates the change in firm value brought about by the merger.By using the financial data of CRRC Group from 2010 to 2019,this paper uses the discounted cash flow method to evaluate the value of CRRC Group in 2015 and the value of its predecessors CSR Group and CNR Group.The result of the assessment is that the increase in enterprise value brought about by the assessment is about 30%.The reason is that mergers and acquisitions have produced synergistic effects and changed market power,thereby improving corporate profitability,thereby increasing the company’s free cash flow and leading to an increase in corporate value.After that,this paper assumes that the merger occurred in 2010 and2019,firstly,it determines the life cycle stage of the enterprise at this time,and then simulates the value of the enterprise in these two cases.The conclusion that the enterprise value is lower than the actual situation in both cases.The reasons for this conclusion are that the premature merger of the growing enterprises leads to the failure to give full play to their own advantages,and the competition of the mature enterprises before the merger damages the value of the enterprise.Therefore,for the state-owned enterprises occupying a monopoly position,the best merger Timing is a transitional stage between growth and maturity.This paper introduces the perspective of enterprise life cycle into the evaluation of value changes brought about by enterprise mergers,which enriches the research angle of enterprise value evaluation and has certain practical significance for the merger of state-owned enterprises.According to the research results of this paper,this paper believes that the merger of stateowned enterprises should choose the right time according to the life cycle of the enterprise,the best stage is the transition stage between the growth period and the mature period,to realize the rational allocation of state-owned resources,and to drive enterprises to find new development points. |
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