The Study On The Financial Integration After Acquiring Enterprises In Financial Distress

Under the background of sluggish recovery in the global economy and domestic economic slowdown,a large number of domestic enterprises decline in profitability in recent years.Financial distressed enterprises have increasingly become the topic of social concern.As a consolidation mean of integrating resources and improving the efficiency,merger and acquisition(M&A)has been a way for distressed enterprises to achieve turnaround.Because of their own characteristics,the integration of distressed enterprises is routinely more difficult.Financial integration which is the core of the integration after M&A is the key to the integrating success.Research of financial integration after M&A has been a focused topic of scholars and entrepreneurs.Existing literatures support that M&A can help financial distressed enterprises to recover the value,but the mechanism and the way of realization have not been revealed yet.Meanwhile,entrepreneurs urgently need such research to assist their company strategies,which manifests the significance of this paper.Based on the relevant research at home and abroad,this paper researches the financial integration model of financial distress companies and makes a certain supplement.Firstly,this paper summarizes related references,analyzing the current research methods and theories.Then,based on the case of G group's acquisition of R financial distressed group,this paper mainly introduces the situation of the case,the causes of the R group financial distress,four stages of the financial integration measures and final results of financial integration.Finally,based on the analysis of the case data to extract the financial integration theory elements,combined with financial distress enterprise value recovery,this paper establishes the dynamic model "consolidation stage-financial integration key-value recovery state" of the Financial Integration after Acquiring Enterprises in Financial Distress.In this paper,there are three findings:(1)Through the data analysis of the financial integration measures during the four stages "Diagnosis Stage-Loss-stop Stage-Tapping Stage-Training stage",this paper summarizes the four elements theory "Cost Optimization-Asset Allocation-Revenue Growth-Function Improvement" after acquiring enterprises in financial distress;(2)This paper reveals the recovery to the values of the financial integration after acquiring enterprises in financial distress,mainly from the "costs,assets,income,function" to revive the values of the company;(3)This paper builds the dynamic path of the financial integration after acquiring enterprises in financial distress to revive the values,basing on the "Diagnosis Stage-Loss-stop Stage-Tapping Stage-Training stage" route.