Performance Research Of XT Electrochemical Scientific Ltd Taking-over XT Sewage Treatment Co.,LTD

Due to the economic environment and industry competition risk,the global economic growth rate in recent years is gradually slowed down after the financial crisis.The global economy is in the deep adjustment.Affected by a series of uncertain factors,the road to economic recovery is still rugged.Under this background,domestic economy is lack of motivation and under downward pressure.In consequence,competitions becomes increasingly fierce around industrial enterprises,especially chemical industry enterprises,and operation management performances of the enterprises are challenging.In response to the internal and external threats,only by strengthening and improving themselves can these enterprises occupy initiative.One of the most common ways to improve market competitiveness and gain control of the market is the strategy of expansion.However,in addition to seeking internal expansion,the enterprise can also achieve the strategic objectives through mergers and acquisitions.As the process of internal expansion is relatively slow and risky,more and more powerful enterprises are keen to acquire opportunities of development through mergers and acquisitions.By accessing to new areas,they find new developmental points to achieve business transformation and upgrading.As means of resource allocation and exterior improvement,mergers and acquisitions easily correlate to the performance of acquisition.It involves at least two parties,so the performance of acquisition can refer to the effect of acquired party but also the acquirer party.It reflects economic effect after enterprise assets reorganization.It also show if acquisition provide a health and active effect in improving the company's value.The performance of acquisition itself and how to estimate it are becoming hot-spot in the security market theory as well as practice circle.We adapt XT Electrochemical Scientific Ltd as the case company in this research.It as an old state-owned enterprise,engaged in chemical material production.It belongs to Electrolytic manganese dioxide industry that is still over capacity and the competition is intense.It also need to take a risk of competitors strengthen their competition.Battery industry is intensifying competition.Their customers require higher quality.These factors will effect to the production's sell directly,and then it will influence the operation performance.In that context,exploring the development of enterpriseis imperative.XT electrochemical scientific Ltd takeover XT sewage treatment co.,LTD by private placement.The acquired party as an independent legal entity exists,and it still keeps their original business.It is to be equivalent to assets reorganization.So it has a practical significance to analyze the performance of acquisition of XT sewage treatment co.,LTD.Through the EVA to analyze the short term and long term of XT sewage treatment co.,LTD.after acquisition,we will find whether it realizes the value-added or not.We will also reveal whether it brings a long-term benefits and new chance for institutional reform of the enterprise.This research provides some reference proposal for using of mergers and acquisitions performance.