The Merger And Acquisition Research Of Jilin Tongbo Chemical Co., Ltd.

In recent years, the industry economy is stable on the whole, with a goodmomentum of development. The main economic indicators of production enterprisesmaintain the upward trend, and the average increase rate of production and sales peryear is more than15%. Meanwhile, due to long-term accumulation, civil blastingindustry still exists a series of problems to be solved, such as small productioncapacity, production factories scattered, low technical level and so on. Mergers,restructuring and closure, which as the main parts of structural adjustment, are themain way to address the issue of civil blasting industry, and the only way for civilblasting industry keeping sustainable development.The merger and acquisition of JiLin Tong Bo chemical co.LTD and JilinDongFeng chemical co.LTD and Yanji JiuSan factory is conducive to thedevelopment of civil blasting industry in Jilin province, and is helpful to improve theenterprise essence security level and competitive strength.This thesis expounds the merger and acquisition situation of Jilin Tong BoChemical Co. Ltd., including the internal and external environment, the driver, andthe development situation and problems. Through in-depth investigation,argumentation, combined with the company’s existing resources, scientific andprudent for the choice of target enterprises, to evaluate and predict the risk of thetarget enterprise, follow the Strategic Development, market value, economicbenefits，synergistic effect of four principles, make snap to promote mergers andacquisitions work. In the whole process, Jilin Tong Bo Chemical Co., Ltd. in accordance with legal procedures, the implementation of the strategy of merger andreorganization is determined, after preparation for evaluation, bargaining, thereorganization and integration of three key steps, eventually make the M&Asuccess. But research on the merger does not end, completed in the resourceintegration, management integration, culture integration, this paper focuses on theeffect of merger and reorganization of the company after the overall systematicanalyses, which covers the management situation analysis, analysis of the corecompetence analysis and synergetic effect. From the corporate strategy, competitivestrategy and improve the synergistic effect of three aspects, we list detailedeconomic indicators and related data, to analyze the advantages brought by mergerand reorganization to the company. In the light of management, mechanism andcultural conflict in after M&A, we consider it as a key points that need to payattention to and thinking of, and we have made some measures and methods whichthrough mutual infiltration fusion transforming it into the company a strong corecompetition ability. Synergistic effect is considered as an important standard of asuccessful M&A. This paper mainly adopts the valuation method to calculate,based on Gordon model as the theoretical basis, and makes a precise calculation ofsynergetic effect with mathematics expression. Through the above analysis of theseeffects, we improve that this merger and reorganization being successful.I hope this study can promote the explosive enterprise to adapt to the changingmarket economy status from "small, scattered, low" state, and can make somecontribution to the development of the modern management theory of explosiveindustry.