The Analysis On The Cross Market M&A Performance Of BBMG Corporation Merged With Taihang Cement Co Ltd

The development of the market economy led to the merger between enterprisesactivities, in order to enhance the value of the enterprise, between enterprise M&Aactivities more and more frequently. As a new type of market economy under theconditions of mergers and acquisitions, stock for stock merger due to avoiding theoutflows of cash in the short term, provide a new idea for the listing Corporationexpansion with low cost. Gold corner shares convertible absorption merger of theTaihang Cement events, is an important event in the development process Chinese incapital market, is between the status of the full circulation of stock market A twolisting Corporation to absorb the merger convertible is another example of a market,has a strong demonstration effect, is a useful exploration for the state-owned listingCorporation grow strong. Therefore, this article through the combination method oftraditional financial index and EVA calculation, comparison of pre and postacquisition performance, tries to find out whether M&A can improve enterpriseperformance, in order to provide certain reference to similar companies after M&A.In the case before the analysis, this paper introduces in detail the mergers andacquisitions meaning, cited five main factors affecting the performance of mergersand acquisitions and relevant theory of motivation of M&A. This paper constructed acomprehensive evaluation of M&A performance system, the evaluation systemincludes two kinds of evaluation methods, i.e., traditional financial index method andEVA method. Based on the calculation of the financial index and EVA before andafter the merger, it found that the convertible absorption merger did not improve thecompany’s financial indicators, also did not give the value of the enterprise bringspositive effect. After the reorganization of the "new gold corner" in addition toprofitability has improved, its solvency, operation ability and growth ability has notbeen effectively improved, even declined. The financial index and no positive performance. Through the merged enterprise EVA calculation, BBMG corporationvalue than the2010average annual decrease. Therefore in the convertible merger,merger and acquisition performance of gold corner shares have not been reflectedpositive effect.In this case, the results show that: the successful implementation of concurrentprogram should pay attention to improve the performance of convertible merger. Thesuccessful implementation of the merger plan established is not equal to the combinedwith complete success. If an enterprise after the merger performance is greatly lowerthan the pre merger performance, although the enterprise scale is expanded, but alsowe can not say that the merge is successful. At present, in M&A activities of theenterprise performance level is generally low, with no value and bring positive effectto these companies, this in fact also damaged the interests of shareholders. Therefore,enterprises should fully understand the actual situation of their own and Target Corpbefore the convertible merger, integration of M&A on both sides of the resources, toimprove the value of enterprise for consolidation purposes, the enhancemententerprise merging performance.