The Anlysis Of M&A Of PCC Group Onthe Financial Perspective

The enterprise merge & acquisition is an important and effective method to adjust the enterprise’s own business structure, to achieve rapid expansion and optimization of economic resources. M&A is significant strategic behavior in the development of enterprises. A successful M&A can help to expand the scale of enterprises, consolidate market position, or penetrate a new industry, add new motive power to development, so as to further enhance the competitiveness of enterprises. M&A plays a more and more important role in today’s business world. American renowned economist Stigler once had also said: “In world famous big enterprise, big group, which doesn’t have is not nearly to a certain extent by some way, through capital operation methods and so on annexation, purchase develops, which simultaneously also nearly doesn’t have is develops completely through the internal accumulation.”In our country, along with the development of market economy and economic system reform, Chinese enterprises mergers and acquisitions have gradually become more frequent. Since the "Opinions of State Council on promoting the merger and restructuring of enterprises" issued, all listed merger and reorganization projects grow rapidly. However, enterprise M&A is a double-edged sword, compared with the huge number of M&A cases, the success rate of M&A is not high. The McKinsey Co statistics shows that only 1/3 of M&A is successful. A number of acquisitions failed because of the strategic objectives setting at the beginning, and arrangement & implementation of the integration work.M&A strategy setting up includes the establishment of M&A aim, selection of M&A object, making of the integrated work plan and other aspects of the work. During these processes, financial analysis is an indispensable part, financial analysis is one of the important tools for making M&A strategy.This paper selected the NYSE listed company PCC Group as research object. Unscrambled the process of PCC Group’s successful acquisition of TIMET Group in 2012. Analyzed PCC Group’s motivation of choosing TIMET Group as the acquisition target from the financial perspective. Analyzed the timing of the M&A.Furthermore, by analyzing the changes of PCC Group‘s financial indicators before and after the acquisition, explained the synergistic effect and the principle of effective allocation of market, resources and operational capacity of PCC Group during the integration.