Research On Control Transfer Of Private Enterprise And Business Performance

Since the first the wave of mergers and acquisitions of the United States in the late 19th century, it has worldwide occurred five large-scale wave of mergers and acquisitions. Under the drive of global mergers and acquisitions, the merger and acquisition has also developed rapidly in China. Under the macro-acquisition environment, the powerful Fertilizer Chinese Company and the relatively weak DQL Chemical Company were combined in order to carry out a combination of their own development. It must continue to develop and grow in the face of more intense competition in the economic globalization today for DQL Chemical Company as a private enterprise. It is an important survival and development way for DQL Chemical Company to merger and purchase. So DQL Chemical Company started the merger and acquisition with the Fertilizer Chinese Company, completed transformation of property rights system relying on the power of capital, and became a modern company. In this paper, we study the transfer of control over the family business impact on business performance basing on DQL Chemical Company. We carried out a strategic analysis for the two sides of the transfer of control for the DQL Chemical Company and the Fertilizer Chinese Company using strengths weakness opportunities and threats analysis. And described the background of its mergers and acquisitions, the motives of merger and acquisition and the implementation after the transferring control, a gratifying change has happened after the transfer of the control of the DQL Chemical Company. Significant improvement has happened in corporate governance structure, asset structure was further optimized and cost-effective improvements in competitiveness in the market. We conducted a financial and financing effect analysis, a scale and brand effect analysis and proposed a experience and enlightenment for the performance after transfer of control.With the method of economic methodology in accordance, we describe the background of topics of significance, domestic and international transfer of corporate control study overview and study of the paper methodology and analytical framework in this paper.It is a theoretical basis for this analysis to study the theory of control transfer using description and integrated method. In this paper we descript the theory of control transfer including the efficiency theory,transaction cost theory,undervalued theory and the theory of market power, Finally we study the corporate governance, performance after the transfer of the control. We can draw a conclusion that it is now in a period of a second business for private enterprise after the initial development, Family governance model is no longer adapted to its development. It is inevitable for private enterprises to establish a modern enterprise system to adapt to the modern market economy. State-owned enterprises have incomparable superiority to private enterprises in some areas such as scale advantages,financial advantages,talent advantage,economic efficiency and establish a modern enterprise system. It is unscientific and desirable for China's state-owned enterprise to emphasize on the exit of state-owned enterprise and enter of private enterprise and to eliminate state control blindly in the reform process.We can draw a conclusion that it has significant improvement for the company in 2009 than in 2008 on the capacity development,operation capacity,profitability and solvency of 18 indicators in four areas.Control problem is a connotation of a wide range of research subjects. we conducted a comprehensive analysis and obtained valuable results after the study of the control transfer of DQL chemical company. However, it is only a separate case in the control transfer market. It needs to be further studied and evaluated foe the universality of the conclusion. But in any case, it still has a lot of theoretical and practical significance for the transfer of the theory of Chinese transfer control in present.