A Research On The Evaluation And Improvement Of Implementation Of Merger And Acquisition Of Guangdong Advertising Co., Ltd.

With the rapid development of our economy and support of macroeconomicpolicies, the prospect of advertising market is very optimistic. However, the marketconcentration of advertising industry is very low, local advertising companies are stillin a"scattered,small,miscellaneous, mess"state. Industrial restructuring and reformingare needed urgently in advertising industry. Thus, the advertising industry has bloweda wave of merger and acquisition. Therefore, the study of the advertising company’sacquisition has certain reference value to the other company’s sustained development.Since Guangdong Advertising Co.,Ltd.’s listing, the company conducted frequentlymergers and acquisitions. It have conducted five mergers and acquisitions in2011and2012years. In the wave of advertising industry’s M&A, the company’s acquisitionopens up a new era of merger and acquisition of local advertising companies whichmeaning significantly.This paper uses the case anaylsis to research the company’s typical mergers andacquisitions. Differenting from most scholars only evaluate the performance of M&A,this paper not only evaluates the performance of frequent mergers and acquisitionsusing event study method and financial indicator method, but also evaluates the entireimplementation of merger and acquisition, analyses problems in the implementationprocess of the company’s acquisition, and proposes appropriate recommendations forimprovement from the acquisition object selection level, level of payment in M&A,merger integration level and management level. Recommendations in the level ofselecting acquisition targets includes: avoiding mergering the company with poorasset quality and high debt; choosing acquisition targets with a good prospect of thecore business and conforming with development trend of advertising market.Changing the method of payment in M&A. Recommendations in the level of mergerintegration includes: strengthening the integration of corporate culture; selectingproper integration mode of system; improving speed of business integration.Recommendations in the level of management after acquision includes: strengtheningaccounts receivable management; focusing on the digging of internal potential afteracquision.Through the study of the evaluation and improvement of merger and acquisitionof Guangdong Advertising Co.,Ltd.which is a leader in the advertising industry, this paper provides a reference for the company’s mergers and acquisitions in the futureand other advertising companies which are implementing or planning to implementacquisitions and avoid them disorientation in the wave of advertising industry’smergers and acquisitions.