A Case Study On The Impact Of Convertible Merger On Corporate Performance

In recent years, the number of mergers and acquisitions in China's steel industry continued to rise, the amount involved in mergers and acquisitions increased year by year, the entire steel industry is in a high level of mergers and acquisitions, iron and steel industry enterprises through mergers and acquisitions continue to expand their business scope and enhance operational strength, For their own external growth speed.Which in recent years more common way to buy mergers and acquisitions merger merger. However, the consolidation of mergers and acquisitions contains the risk of mergers and acquisitions in recent years, mergers and acquisitions in the case of failure is not uncommon, mergers and acquisitions can improve the performance of mergers and acquisitions is a key factor in the success of M & A, It is not only of theoretical significance, but also has important practical significance to evaluate the performance of the merger before and after the merger.This paper chooses J Company to convert and merge L company as the research object, through the J company convertible merger L company's event to carry on the concrete analysis to its company performance. In this paper, the use of literature research and case study method for analysis, the main materials from the Chinese journal network, the case of corporate announcements, annual reports, interim reports,securities companies published information related to the media, television and other media reports, etc. Case of corporate convertible absorption The merger always focuses on the process and the process of starting, for the study of this article to provide relevant information.This paper first introduces the research background and research significance,reviews the merger literature at home and abroad, and reviews the relevant literature.Secondly, it introduces the theory of merger and merger, and defines the relevant concepts. At the same time, this paper analyzes the theoretical background of the merger and merger of Chinese enterprises and the influence of the merger and merger on the performance of the company. It also gives an overview of the basic situation of the two companies before the merger of J shares and L companies, including the business Scale, financial status, etc., reviewed the process of mergers and acquisitions,and finally the case analysis, respectively, from the merger to absorb the financial performance and market performance analysis,the corresponding conclusions and conclusions.The study found that: (1) the merger of the merger to adopt a reasonable conversion ratio to optimize the ownership structure of the enterprise. (2) mergers and acquisitions to upgrade the R & D system to enhance the core competitiveness of enterprises. (3) consolidation of mergers and acquisitions to attract the injection of high-quality assets to enhance the scale advantage. (4) convertible consolidation combined with complementary business and improved financial performance.According to this conclusion, the following conclusions: (1) standardize the company to determine the proportion of shares and use. The determination of the conversion price and the ratio is related to whether the convertible merger is successful and is the most basic part of the merger. (2) combined with the actual situation of the company reasonable choice of mergers and acquisitions. Mergers and acquisitions in different types of companies should be based on the different aspects of a reasonable choice for their own long-term development of mergers and acquisitions, rather than blindly focus only on short-term interests. (3) focus on the merger of human resources after the integration of human resources, corporate mergers and acquisitions should be the original intention of the two resources will be integrated to play a synergistic role. (4) Concerned about the company's endogenous growth and M & A growth of the common development of the company in the process of growth on the one hand the need to expand their business, but also can not ignore the search for a suitable company for M & A activities.