The Analysis Of Foreign Mergers And Acquisitions Of Private Enterprise

Since the 1990s,with the large-scale foreign investment in China's manufacturing industry,China is rapidly experiencing the industrial upgrading of the manufacturing industry and the period of transition to mature market.In the process,there is a situation of vicious competition within the internal friction in domestic private enterprises,and exists bottlenecks of management and product quality.When the real economy fluctuates,many private enterprises will face the problem of the way out,the acquisition and be acquired became a solution,through mergers and acquisitions,enhance the management level and product quality,expand brand influence.This demand in 20-30 years later with China's reform and development,became especially prominent.By the end of 2010,the high-end market has been divided by several international companies.However,the rise of private enterprises in the low-end market is also obvious to all,with the quality of the upgrade,low-end products gradually upward expansion,high-end market felt pressured.Foreign companise in China's business growth gradually slowed down from the past 30-40%annual growth rate gradually decreased to single-digit growth.In order to find new opportunities for development,many multinational companies began to focus on low-end market,through mergers and acquisitions of local private enterprises,to take double-brand strategy to expand market share and accelerate expansion.In this paper,through a case of the M&A between S company and D company as the object to analyze,from the different perspectives of the buyer and the seller,by analyzing the situation of both sides before M&A,as well as from the valuation of D company,due diligence,the integration after M&A and some other directions,to in-depth study of the acquisition process.The core of the paper is to explore the characteristics of such mergers and acquisitions,and through comparative analysis to get lessons learned.Because of the reasons for the confidentiality of business,in the paper,there is relevant treatment for the names of the companies involved and reference data.Hope by analyzing the impact of such mergers and acquisitions on foreign enterprises and private enterprises,through theoretical research and practical investigation,so that play further influence to Chinese economy.