Case Study On Tian Neng Company's Merge & Acquisition Plan Of Zhuzhou Medicinal Material Company

In recent years, the merge & acquisition of SOE by private enterprises has become a focal point in the field of China's economic life. It has gradually become an important approach to the reform of state-owned economy, the development of private economy and the optimization of national economy's industrial structure. Many private enterprises also expect to strengthen themselves through merging & acquisition of SOE to realize a rapid growth.However, enterprise's merge & acquisition are subjected to the restriction of various problems including variety of systems, mechanisms, capital investment, enterprise cultures, etc, for it started rather late in China and, besides that, our economic system is under the period of transition. Meanwhile, the theoretical development of enterprise's merge & acquisition also lags behind the realities. Especially, the theory concerned with the merge & acquisition of SOE by private enterprise is still in an initial stage. While most of the merge & acquisition of enterprise happened in reality is between the two different natured systems. In terms of theory construction, it is still under the stage of modeling on the matured theory of western market economy, which gives limited guidance on China's merge & acquisition. So we need to strengthen our theory on the prevention of risk emerged in merging & acquisition as well as on the theory of performance evaluation.The paper mainly studied on theory of capital operation and merge & acquisition, provided theory guidance for Tian Neng Company on the breakthrough of development bottleneck, conducting of capital operation, implementation of merge & acquisition, realization of external growth. Meanwhile, it also probed into Tian Neng Company's implementation of capital operation as well as on the motive, significance and risk of merge & acquisition, and therefore, provided reference for Tian Neng Company on implementation of merge & acquisition. Furthermore, it devised a scheme for Tian Neng Company on its merge & acquisition of the Medicinal Material Company. Finally, it carried out performance appraisal on this case of merge & acquisition.The paper elaborated on Tian Neng Company's merge & acquisition of the Medicinal Material Company from both theory and practice and especially designed a plan of merging & acquisition. We strengthened on the prevention of risk for merge & acquisition to ensure its success. In view of the peculiarity of China's national conditions and the reform of SOE, it is viewed that the merge & acquisition of SOE by private company not only bear a great significance economically, but also bear more significance politically. Thus, the performance of merge & acquisition of China's SOE by private enterprise couldn't be affirmed comprehensively only by using the appraisal method resulted from the matured western market economy.It is demonstrated by above study that Tian Neng Company's merge & acquisition of the Medicinal Material Company is a rather successful case. Due to the operation of merge & acquisition, Tian Neng Company and its serial enterprises realized development by leaps and bounds. The practice and theoretical research made in it provided a significant case for private enterprise's merge & acquisition of SOE.