The Research On Mergers, Acquisitions,Enterprise Transformation And Upgrading

In the last decade,transformation and upgrading has been the theme of China's economic restructuring and development.It is a major practice in the field of management in China and the most important behavior of the companies.In recent years,the domestic economic development has come into a new situation.The opportunity and pressure of the enterprise transformation and upgrading coexist.Zhejiang province caught this trend,with the developed capital markets,gradually promote mergers and acquisitions(M&A)of listed companies and explored a new path on the transformation and upgrading of enterprises.In this context,many companies in the traditional industries are inspired,actively look for the target of M&A in order to achieve their own transformation and upgrading.This paper studies the motivation,mode,the focus and risks of enterprise that want to do transformation and upgrading by M&A,as well as the effect evaluation.In the theoretical analysis part,this paper combines the smile curve of industrial chain with GE matrix,establishes the model,analyzes 4 transformation and upgrading modes theoretically,and matches the transformation and upgrading mode according to the location of the companies in the GE matrix.By analyzing the transformation and upgrading path,focuses and risks of transformation and upgrading based on M&A,it shows that transformation and upgrading based on M&A is an effective way for companies.In the part of case analysis,this paper selects Junsheng Electron Ltd.,studies its transformation and upgrading motivation,mode,risks and effect,proves its success and verifies the upgrade effect.Based on theoretical analysis and case study,this paper holds that:(1)enterprises should choose the correct transformation and upgrading mode according to their specific circumstances,so as to improve the transformation and upgrading effect.Enterprises can select relevant indicators,evaluate the industry attractiveness and competitiveness of themselves,determine the specific location of the enterprise in the GE Matrix,and choose the corresponding transformation and upgrading mode.(2)M&A is a shortcut to realize rapid and efficient transformation and upgrading.To seize the opportunity,to choose the right merger targets and to integrate effectively after the merger,these three elements are the powerful guarantee for the successful transformation and upgrading based on M&A.China's traditional manufacturing industry has many disadvantages,such as weak technological innovation and research capability,backward management concept,lack of local brands,low degree of mechanization and poor resource utilization efficiency,which impede the further development of enterprises.After the financial crisis in 2008,Chinese enterprises were struggling to survive in the cracks and gradually realized the importance of core competitiveness and innovation ability.Many companies began to explore new ways of transformation and upgrading.This paper studies the transformation and upgrade modes,summarizes the experience of Junsheng Electron Ltd.'s successful transformation and upgrading based on M&A,in order to offer some enlightenment to other enterprises' transformation and upgrading activities.