Research On The Motivation And Effect Of Private Listed Companies Merging Military Enterprises

At present,the integration of military and civilian has risen to the national strategic height.More and more private listed companies have invested the target of the merger and acquisition to military enterprises,and enter military industry through merger and acquisition in order to make the listed companies expand market share,increase profit points and improve their market competitiveness.In the context of the integration and development of the military and the civilian,the effect of private listed companies' merger and acquisition of military enterprises and whether to achieve the objectives of the pre-acquisition are urgently needed to be further studied.By combing the related theories of enterprise merger and acquisition,this paper analyzes the current situation and motivation of the private listed companies' merger and acquisition of military enterprises in China.This paper finds that the main motives of the private listed companies' merger and acquisition of military enterprises include the support of the national policy,the reduction of the threshold,and the defense and military expenditure has increased year by year and a large space for growth.Expand market share to achieve economies of scale,integrate resources to achieve synergy effect.This paper selects a more successful case of merger and acquisition of the " private enterprises entering the military industry "-Yinhe electronics company mergers and acquisitions the Tongzhi mechatronics company,and analyzes the background,process and motivation of the merger and acquisition.At the same time,from the three dimensions of market reaction,synergy effect and economic value added,the comprehensive use of event research method,financial index analysis method and economic value added method is used to evaluate the M & A effect of the case.It is found that Yinhe electronics company has achieved a good market reaction through merger and acquisition,which improves the operation synergy effect and financial synergy effect of the enterprise,and increases the wealth of shareholders.However,there are also some problems in the process of M & A,such as the high valuation of the target of M & A,the greater pressure of research and development funds,the poor ability of asset turnover and less preferential tax policies.Based on this,the paper believe that the merger was a relatively successful merger and acquisition on the whole.The successes of Yinhe electronics company mergers and acquisitions are summarized to enlighten other private listed companies.In view of the problems existing in the process of merger and acquisition of military industrial enterprises by private listed companies,the corresponding optimization suggestions are put forward in order to provide reference for China's private listed companies to merge and acquisition military enterprises,and promote the healthy and sustainable development of the economy.