Optimization Design And Application In Merger And Acquisition Process Of ABC Group Limited Company

Abstract:ABC group limited company is the flagship of energy metering industry. After it is successfully listed in2005, because the market capacity of the main business is limited, ABC group must take advantage of merger and joint venture as means of development to extent to the intelligent power distribution industry。However, in the nascent try of ABC group’s merger and acquisition, ABC group was too busy with the activities of its merger and acquisition but got half the results with double effort due to lack of a complete and effective process and ruling ability to process o After nearly20project’s trial and error,ABC Group has accumulated a large number of practical experience in the merger and acquisition activities, it is a imminent task to change "many pears" into a "pearl" and optimize ABC group’s existing too simple M&A process。In this paper, By summing up ABC group’s M&A cases happended in the prior period, Based on Siemens’s joint venture and M&A process, ABC group optimized its own M&A process which includes three stages and twenty key steps:the strategic stage(to determine the M&A strategy、target firm selection、target firm research、initial evaluation), the trade execution stage(build the M&A platform、due diligence、write a commercial prospectus、appraisement determine the transaction structure、formulate the M&A plan、negotiation and make a agreement、administrative examination and approval),the integration stage(transitional arrangement、 the change about the board of directors and enterprise registration、 business integration)。The optimized M&A process has been applied on the case that ABC group merged ae state-owned enterprise called Gaokai, It showed that the optimized M&A process is beneficial to ABC group to improve its ruling ability of M&A process and support the company turn to epitaxial growth model by the efficient procedure and M&A result which achieved the desired synergistic effect。...