Analysis Of Changzheng Electric Merger In Guo Hua Hui Yin Merger Performance Under The Strategic Goal-driven

Mergers and acquisitions(M&A)prompt companies to achieve economies of scale,enhance core competitiveness,improve share market and business performance.M&A is of great significance to industry and the whole development of market economy.It also helps achieve the adjustment and reconfiguration of the resources of industry,promote the upgrading of industrial structure.During the two sessions in 2015,premier Li Keqiang proposed the Internet Plus,which provides new opportunities for the transforms of traditional industry.However,with the increasing demand and strengthened supervision and approval from central government,license of the third-party payment tools is more difficult to obtain.At the same time,third-party payment corporations have met bottlenecks problems about their development.To carter to the requirements in the Internet Plus era,traditional industry is turning to acquire third-party payment tools in order to find new growth points and achieve the economic transformation.Using the case method,this paper analyzed the performance of Guihou Changzheng Electric Co.Ltd after M&A with Beijing Guohuahuiyin Co.Ltd from short term and long term performance,finding out the factors to drive the M&A and giving evaluation on the result.Through the analysis of differential income and financial index,this paper makes an assessment on the performance of this M&A from short term and long term performance.According to the analysis of the case,series of suggestions are proposed from internal and external to improve performance of traditional industry after cross-industrial M&A.