Research On The Reserve-merger Case Of Yinyi Holdings Based On The Perspective Of Finance

Reverse Merger is a new Merger and Acquisition (M&A) mode appeared in China in recent years, and it is a kind of special case between different enterprises’merger. Recently, the government and the banks realized that the entire economic environment was in the potential inflation pressure.Though the "New National Ten" which was published on April16,2010, made the merger and reorganization activities of real estate enterprise tightening, the Reverse Merger case of real estate enterprise still increase gradually in our country from2010to2013. There were55real estate M&A cases in the first half of2013, with$3.59146billion. The activity of M&A ranks highest in the total country industry. But more and more problems in the process of enterprise Reverse Merger is exposed, such as insider trading, shell resource hype, fraudulent financial reports, etc. At the beginning of2014, the China Securities Regulatory Commission (CSRC) spokesman declared IPO restarted, and the standard of Back-door Listing was the same as the Initial Public Offering (IPO), at the same time the Back-door Listing in the Growth Enterprises Market was forbidden. This will make the boom of Reverse Merger cooling, and bring many challenges to Back-door Listing companies. This article will study the financial problems in the case of Yinyi Holding Group reverse merger LanGuang Technology Ltd., and hope provides some opinions and suggestions for small and medium-sized real estate enterprises’Reverse Merger.Most scholars mainly focused on the different ways of accounting, the motivation and the performance of Reverse Merger.This paper’s research object manly focus on the case of Yinyi Holding Group reverse merger LanGuang Technology Ltd., based on the enterprise M&A theory, analyzes the main financial problems and the key points in each link. In this article, the author analyzed the financial problems in the cases with the method of the financial analysis. The author first introduce the situation and the process of both sides of the case, and then analyses the motivation Of the merger case; Then the writer analyses the target firms’Balance sheet, Income statement, Cash flow statement and financial ratios, and summarizes the financial situation of LanGuang Technology Ltd.. In the next step, the author analyses the financial risk of the enterprise value evaluation, financing mode and integration mode; Finally, the writer analyses the financial performance of the enterprise after acquisition, and in view of the financial risk and financial performance problems put forward its own suggestions, and prospect for the future Reverse Merger research.This article attempts to provide the overall train of thought for the Reverse Merger of small and medium-sized real estate enterprises, to help enterprises to implement effective financial countermeasures, to avoid the financial risk that may occur and improve the financial performance after an acquisition. The author hopes that this case study will give the small and medium-sized real estate enterprises some reference significance for Reverse Merger of capital operation in the future. On the one hand, the process of real estate enterprise Reverse Merger and the financial problems may occur in the case can be summed up; On the other hand, the financial problems and financial analysis methods in the case can be used in other cases, and the manager can think about how to effectively avoid the occurrence of the risk in the level of financial strategic, and how to supervise and standardize enterprise listed activities. Through these two aspects, the actively-merging enterprises can promote the growth of enterprises and improve enterprise management.