Develop Practice And Thinking Of The Corporate Acquisition Program

As the reformation of state-run enterprise and the consummation of market- economy system in China, the importance merger of corporations has been attached more and more to the entrepreneurs, government and theoretic academia. Under severe marketing competition, the only way for an enterprise to keep its advantage is continuous upgrading, while the combination of corporations is the most efficient way to achieve this goal. Low-cost expansion may be a choice for external exchange strategy, whereas merger can explore its potential advantages in a wilder prospective, for combination can assist enterprises enter a brand-new industrial field with primary foundations. Mergers benefit for the quick development of enterprises and realization the strategic objectives of an enterprise in terms of expanding enterprise entity and capital gross and standardizing the management system. A variety of modes of enterprise combination are applied in the world wide, but the key point for the success in enterprise takeovers is dependent on procedural details of establishing, choosing and executing projects.China Paper Company Group, established by the end of 1999, by transition from trade exchange business to paper-making industry is considered as a major corporation of integrated Pulp﹠ Paper. From September 2004, China Paper Company Group began to negotiate with Black Dragon Co. Ltd. about merger. For China Paper Company Group itself, which is in its development phase and of which the capital volume and gross sales experience are fast increasing, the leading products are bleached sulfate bamboo pulp and newspaper. Black Dragon Co. Ltd. is one of the nine key enterprises of national newspaper industry, whose leading product is also newspaper and occupies 8% of the total market, with gross capital stock 327,225,000 and 97,500,000 for public market circulation. For the sake of obtaining the goal of becoming top in national gross newspaper production, through combination with Black Dragon Co. Ltd., China Paper Company Group has to formulate rational, enforceable combination plans, which are acceptable for stockholders of Black Dragon Co. Ltd.In this dissertation, in the format of case study, the whole procedures of argumentation and proceeding of merger plan will be elucidated and the factors should be considered and the combination planning will be discussed as well. The detailed proving procedures for final plans include analysis of the strategic motivation and financial motivation of China Paper Company Group, analysis of the need of development of China Paper Company Group, analysis of the potential ventures for these combination...