A Study On The Merging Of Private Eeterprises To The State-owned Enterprises

Since the reform and opening up, Chinese economy is experiencing rapiddevelopment, however，the problem of losses and liquidation of state-owned enterprisesoccured frequently，this is due to their own management system which can not suit themarket economy, the government has repeatedly and vigorously implemented reform forstate-owned enterprises, meanwhile，there are experts and scholars put forward the"government back people forward", the strategic adjustment of state-owned economy andreform of state-owned enterprise is imperative. The restructuring of state-ownedenterprises is of great significance to promote the adjustment of economic structure,industrial structure. As a result, the state-owned enterprises is seeking a wide range ofreforms, private enterprises mergers and acquisitions of state-owned enterprises are thefocus of state-owned enterprises reform in China, but due to the lack of complete laws andregulations, and without rich experience, coupled with own problems of privateenterprises, many M&A cases are failure in the end.This paper does some research and analysis on this situation. The article firstdescribed the concept of mergers and acquisitions, made a detailed analysis of theacquisition motivation and M&A related theory. Then reviewed the history of China’s M&A, analysed the current situation of the development of private economy, developmentof state-owned enterprises and private enterprises mergers and acquisitions of state-ownedenterprises. Focused on taking example of Zhonglu Group M&A Yongjiu shares, detailedanalysed and summarized its M&A process, mergers and acquisitions results. Privateenterprises M&A first have to have a full understanding of the entire economy market,comprehensive survey to be done about the targets, blindly M&A should be avoided, Themost important thing is to raise attention to post-merger integration, especially theintegration of cultural. Finally, concluded and summarized experience from Zhonglu Group M&A Yongjiu shares, to provide a reference for the future restructuring of privateenterprises mergers and acquisitions of state-owned enterprises.