Research On Tax Synergies Of Mergers And Acquisitions Under The Background Of Bailout

Since China’s economy entered the new normal stage of development,the macro economy has suffered from the triple shocks of "demand contraction,supply shock and weakening expectations",and the downward pressure on the economy has increased.Some private enterprises have problems such as tight cash flow,declining performance and high asset-liability ratio.Some enterprises even fall into debt quagmire and face the risk of capital chain rupture.Under the background of prominent liquidity risks,M&A has gradually become an important means for state-owned enterprises to save private enterprises in difficulties.In recent years,the national and local governments have issued many supporting preferential policies on mergers and acquisitions,hoping to play the incentive role of tax policy on rescue.With the development of bailed-out M&A in the direction of vertical deepening,the tax synergy effect,as an influence on M&A strategy and investment decision,deserves full attention and research.This thesis mainly studies whether the merger and acquisition activities under the background of state-owned enterprises bailing out private enterprises can obtain tax synergy effect,and how much tax synergy effect can be obtained.Firstly,based on the overview of stakeholder theory,M-M theory and tax synergy theory,this thesis confirms the rationality of studying the tax synergy effect of M&A.Secondly,this paper sorts out the tax-related policies of M&A,discusses the development status of stateowned enterprises’ bail-out M&A of private enterprises,and puts forward the problems of insufficient bail-out number,ignoring tax synergy effect and high threshold of tax policy application of M&A.Thirdly,the tax synergy mechanism of state-owned enterprises in bailout M&A is analyzed,the necessity of tax synergy of M&A is clarified,and the tax synergy mechanism before and after M&A is classified and explained,so as to prove the realizability of tax synergy.Finally,this paper analyzes the marginal changes of tax effects of the two enterprises in the year before and after the merger by state-owned enterprises taking the case of the M&A of state-owned enterprises as the research object,and discusses the impact of the bailout M&A on the tax synergy effect of the two enterprises.On the basis of previous research,this thesis combines the overall situation of state-owned enterprises’ bail-out merger and acquisition of private enterprises,and explores the changing effect of tax synergy between the two sides of merger and acquisition based on the financial data of actual cases.The study draws the following conclusions: state-owned enterprises can obtain income tax synergy,turnover tax synergy and overall tax synergy by bailing out private enterprises based on the background of bailing out,and realize tax savings;From the perspective of different roles in M&A,the tax synergies obtained by state-owned enterprises as the acquirer and the rescuer are better than those obtained by private enterprises as the acquirer and the rescuer.;No matter whether the actual income tax rate decreases or not,at least one of the indicators measuring income tax synergy changes positively after the merger and acquisition,so as to obtain the tax synergy effect in this aspect;In the same case,the indicators of income tax synergy obtained by the acquirer’s state-owned enterprises are more diverse.Accordingly,it is proposed to lower the threshold for the application of tax policies related to bailout mergers and acquisitions from the government level,and optimize the tax incentives for bailout mergers and acquisitions;For enterprises themselves,this paper puts forward some suggestions to incorporate tax synergy effect into M&A decision-making,make full use of preferential tax policies for M&A and strengthen the integration of tax resources after M&A,which has certain reference significance for state-owned enterprises to carry out bail-out M&A decision-making.