Case Study Of The Merger And Acquisitions Of The PRB Bio-Tech Co.,Ltd During Firm's IPO Process

Deepening the reform of state-owned enterprises under the new situation, accelerating the IPO process is the common task that all levels of government and enterprises are faced at present, especially in the promotion of enterprise capitalization process, how to carry out mergers and acquisitions work is one of the issues which many officials, scholars and entrepreneurs are during with.Pearl River Bridge is a brand and company of nearly 60-year history, in 2008, according to the requirements of the reform of state-owned enterprises,through the joint-stock system reform, the factory as the core, the integration of R&D, Production, trade and many other units as a whole, to set up a joint-stock company, were identified as one of the key enterprises by SASAC. However, in the IPO process, Pearl River Bridge Company has encountered competition and asset integrity problems. In order to solve this problem Pearl River Bridge Company use the method of mergers and acquisitions.This passage takes two examples of mergers and acquisitions as case study to explore the transform operation system of stated-owned enterprise, and the problems and modes during the process of IPO and mergers and acquisitions. Firstly, this passage analyses the strategic positioning of the business environment of Pearl River Bridge Company by using theoretical model, and analyses the existing problems. Question 1: Because Pearl River Bridge and Star Lake belong to Guangdong Guangxin Holdings Group Ltd., they are forming competition in the condiment business.Question 2: Pearl River Bridge Company is a company of an independent legal entity; but it does not have the trademark rights of “Pearl River Bridge”.The insufficient joint-stock system reform was the problem left by the process of asset integrity; furthermore, restore the two mergers and acquisitions process. The cases studies involve property evaluation, capital increase and share expansion, problems of rearrangement of persons and production after mergers and acquisitions. And finally evaluates and analyses the success factors of two mergers and acquisitions, and analyze the problems of the reorganization of state-owned enterprises in the acquisitions in the theoretical level.