The Analysis Of The Financial Effect Of Enterprise's Horizontal Merger And Acquisition

With the rapid development of China's economy and the acceleration of globalization,domestic enterprises for the rapid expansion of business scale will become more and more strong,the ways and means of expanding scale have been explored continuously,in the process,mergers and acquisitions have become an expanding model for domestic enterprises.In many successful cases of merger and acquisition,the scale and performance of the enterprise improved significantly after the merger and acquisition.So,based on the case analysis of horizontal merger,merger motivation and effect of horizontal merger on the performance of the company,try to find the inherent law and characteristics of horizontal merger,analysis of the mechanism of financial effect of horizontal merger and acquisition,which has important academic value and practical significance.This paper uses the methods of literature study and data analysis method,the merger theory is applied to specific cases,analysis of the general process of the acquisition of Tsinghua Unigroup merge Spreadtrum Communications,to explore the financial effects of horizontal mergers and acquisitions.First of all,through consulting the relevant literature at home and abroad,and analyzing and summarizing the views of experts at home and abroad,so as to lay a good theoretical foundation for the study of the causes of horizontal mergers and the impact on the performance of the company.Secondly,based on the actual case of the acquisition of Tsinghua Unigroup merge Spreadtrum Communications,to analysis the motivations of horizontal merger acquisitions both at the same time,by comparing the financial data before and after the merger and acquisition of the Tsinghua Unigroup,the financial effect obtained after the merger and acquisition of the Tsinghua Unigroup is summarized and the reasons are analyzed.The first part is a summary of the theory of horizontal mergers and acquisitions.Horizontal mergers and acquisitions refers to two or more production or sales of the same,similar products,independent enterprises,through the transfer of capital to achieve the transfer of ownership or ownership to expand the scale of production and achieve the best economies of scale a way of mergers and acquisitions.Horizontal M & A financial effect refers to the financial benefits of the integration of two or more enterprises after the acquisition,which may be caused by efficiency,and may also be defined by the inherent provisions of tax law,accounting treatment and securities trading.Horizontal M & A financial effects mainly from the financial performance,cash flow,input and output aspects of analysis.The main source of financial effects of horizontal mergers and acquisitions is the rise in income,the realization of economies of scale,the acquisition of tax benefits and the reduction of capital costs.The second part is the Case introduction of Tsinghua Unigroup merge Spreadtrum Communications.Tsinghua Unigroup as a mergers and acquisitions,to seek mergers and acquisitions,including: the operation of taking Spreadtrum Communications back to A-share market to gain a great benefit;integration of resources to improve the concentration of the semiconductor industry in the country;the pursuit of horizontal mergers and acquisitions to achieve economies of scale.And Spreadtrum Communications as the mergers and acquisitions side,to accept the acquisition of the motive: to increase the company's long-term market share,strengthen the competitiveness of enterprises;access to mergers and acquisitions funds and policy advantages,improve social support;use of mergers and acquisitions of state-owned assets background,rank in the field.The third part is the financial effect analysis of horizontal mergers and acquisitions brought by Tsinghua Unigroup.From the financial performance,cash flow and input and output of the three indicators were analyzed on the financial effect,the results show that: profitability,operational capacity,solvency,cash flow cash level is on the rise,capital cost reduction,indicating that the overall operation of the Group after the acquisition of Tsinghua Unigroup in good condition,positive financial effect is obvious.The fourth part is the conclusion and enlightenment of the case study of Tsinghua Unigroup.By analyzing the M & A case of Tsinghua Unigroup,it shows that horizontal mergers and acquisitions can improve the performance of enterprises and improve the operational efficiency,and can obtain the synergistic effect after M & A.Therefore,when considering horizontal mergers and acquisitions,enterprises should choose the appropriate M & A target,seek complementary advantages,but also pay attention to the effective integration of resources after the merger,so that the financial effect of horizontal mergers and acquisitions to maximize.