Research On The Financial Integration After The Enterprise Merge And Acquisition

In the development process of the modern enterprises, M&A is not only an important way of expanding and developing but also a very important means of reallocating the social resources and improving the efficiency in resource use. At present the ways of M&A is getting diversified and the scale is getting bigger than before. It has gradually become an upsurge in domestic and abroad. Despite the, quantity of M&A goes up year by year, according to the statistics of the authority organization the successful rate can not arrive to the total deal of30%. Among the various reasons the most important one is that M&A integration does not got successful. Financial integration in M&A is an important link in integration after M&A. This dissertation is mainly about financial integration, so as to provide theoretical guidance to the practices of financial integration.First of all, this paper discussed the achievements and limitations of the research on the financial integration, after reviewing and summarizing numerous studies. On this basis, we define the integration model and management model of the financial management, providing the suggestions for the different situations. Which factors will the affect the integration for the financial integration. Analyzing the background, the motivations, business scope, tax, law, and the financial ratios, providing the identifying method for discriminates of financial fraudulence in the financial report. All analyzing the enterprise build a foundation for financial integration after merge and acquisition.Secondly, this paper introduce the popular valuation method to the target enterprise in the process of M&A. doing some research from the following aspects: estimation on the future earnings growth, the value for the investing opportunities, the price difference in the different capital market, synergy effect and the group controlling factors. This paper also researched the valuation for the enterprise in China:the theory, the standards, and the practices. They effect, coordinate mutually, and develop commonly.Thirdly, this paper defined the concepts of different payment methods, introducing the common methods, analyzing the strength of different methods. Concluded that different payment method have different effect on the merging enterprise and target enterprise. This paper also researched the financing for the payment. The enterprise has preference in the financing order. Generally the enterprise prefers the internal financing, if outside financing from the enterprise is needed, the enterprise prefer the debt financing.Finally, this paper researched the main aspects involved in the financial integration, give some specific measures. The integration for the financial management after M&A includes the institution, organization, employee, the main financial activities, assets and liabilities. The integration of institution is to realize the target of the enterprises strategy. The integration of main activities is to realize the optimization of the capital structure. The integration of the assets is to realize the value increasing. And the integration of debt is to decrease the financial risk.