Hualong Pharmaceutical M & A Financial Analysis Of The Lily Biological

This paper mainly researches the contents and methods of the financial analysis of the mergerand acquisition, in order to make merger and acquisition between Chinese enterprises regularand rational.The paper includes five chapters:Chapter One is an introductory chapter. In this chapter, the author explains the effect ofmerger and acquisition on the development of market economy and the current researchsituation relating to merger and acquisition.Chapter Two presents the outline and the developing strategy of the two parties of merger andacquisition, and the effect of merger and acquisition on the two parties.Chapter Three studies the contents and methods of the financial analysis of the targetenterprise. In the basis of the financial statement, the author analyses the financial situation oftarget enterprises through combining structural analysis, trend analysis and financial ratioanalysis so as to understand the real financial situation, summarize the operational status andget to know the quality of assets and liabilities.Chapter Four is about the value estimation of target enterprise. On the foundation of thefinancial analysis of target enterprise, though synthesizing and comparing all kinds ofmethods of value estimation about the listed and unlisted companies domestically and abroad,the author determines to regard discounted cash flow as the dominant method of valueestimation.Chapter Five studies the mode of payment and the financial risk of merger and acquisition. Inthis chapter, the author analyses the effects of the different mode of payment and income taxon enterprises merger and acquisition, and account for the contents and countermeasures ofmerger and acquisition risks.