A Comparative Analysis Of Two Merger And Acquisition Performance Of JIZHONG ENERGY GROUP

M&A,as a quick way of enterprise expansion,has been playing an important role in enterprise decision making.With the completion of the split share structure reform,the number of M&A and the size of the assets involved have been greatly improved.In our country,the academic and theoretical circles have been paying much attention to the M&A of state-owned enterprises,in addition to the large scale of the merger and acquisition of state-owned enterprises,also because it is affected by the government.In addition to the enterprises for their own development needs for mergers,local governments will be for their own purposes,the subordinate state-owned enterprises designated enterprises diversified M&A,commonly known as "matchmaker".So in this process,what are the causes of diversification? Does the government achieve its own purpose in the M&A decision? What is the performance of such diversified mergers and acquisitions? What are the factors that affect these performance? We use The JIZHONG ENERGY GROUP acquisitions Northeastern Airlines with NORTH CHINA PHARMACEUTICAL as the research object,and compares the performance before and after the merger,in order to provide some explanation for the performance of enterprises after the merger,and provide some reference for other enterprises M&A.This paper analyzes the performance before and after the two JIZHONG ENERGY GROUP acquisition case,compared with that of consecutive losses and eventually sell the Northeastern Airlines,the performance of merger of NORTH CHINA PHARMACEUTICAL relatively well and achieve the purpose of merger and acquisition of local government.Investigate its reason,two M&A payment methods,the degree of integration,government intervention and other factors led to the merger of the two cases of different M&A performance.Compared to the cash payment,the state-owned enterprise's special free transfer of assets not only simple,but also saves a lot of money for the enterprise;at the same time,a higher degree of human resources,organization and integration of enterprise culture can effectively improve the performance of mergers and acquisitions;industry barriers to entry has a negative impact on the performance of mergers and acquisitions to diversify;finally target company with a closer geographical distance and the great support of the government also has a positive impact on the performance of mergers and acquisitions.According to the results,puts forward some suggestions and countermeasures for the company M&A.First,not only limited to the cash payment,try to use a variety of flexible means of payment.Second,we need to strengthen the merger integration,including the integration of cultural integration,human resources integration and organization.Third,choose the target after fully consider the policy and geographical factors,which effectively reduce the communication cost and improve the performance of M&A.