Research On The Financial Of Mergers And Acquisitions Zhongyin Cashmere Industry

With the further deepening of market economy and economic globalization, According to lots of domestic and foreign successful cases, diversification and scale management is the sustainable source of enterprise development. As a kind of economic resource redistribution, the merger is one of the most effective ways to achieve this management pattern, also is the primary way to achieve the maximization interests of shareholder and get high profit returns.The thesis’s theme is studying the M&A action of ZhongYin cashmere Co. Ltd who is a key preponderant industry in Ningxia and merge Tim Duncan. Analyzing based on M&A’s both enterprises situation, background,motivation and purchase methods, applying financial indicators, through comparison analysis of mergers and acquisitions and corporate ownership structure, asset quality, tax level, solvency, profitability and operating capacity, cash acquisition ability and development ability of eight financial indicators with domestic and foreign relevant M&A theoretical. The thesis should achieve an objective evaluation on merger performance of Zhongyin cashmere:Zhongyin cashmere liquidity increased sharply at the merge point because of merger behavior. Six months late, the liquidity growth was back to the merger ago, which shows the company has the ability to rapidly integrate acquisition of assets and to maintain relatively stable, envy if the merger behavior bring temporary shocks in their current assets. Mergers and acquisitions significantly improve the company’s profitability, polish up operational capacity, decline short-term and long-term debt paying ability, trend to increase the financial risks; As company’s assets and liabilities is little changing and capital structure is relatively stable. After the merger, expand production and sales of the investment scale of fixed assets, cash flow and investment activities cash flows are obviously increase the outflow trend, development ability are improved greatly. The improvement is reflected in the development of the corporate scale and profits. Anyhow, the acquisition at the evaluation of financial performance is successful. The company’s financial rules and risk are consistent and don’t appear larger fluctuation about the merger, at the same time, the company improve the operation ability and development ability through the acquisition in a certain extent.