The Case Study Of LN Listed Company Reorganization

These years,because of the fast-growing national disposable income and people's fast-growing spiritual and cultural needs,Chinese tourism industry market has greatly expanded.On the capital market,merger and reorganization have been the most popular ways for tour companies to scale up.In a common merger and reorganization case,choosing reorganized part and its valuations are the keys leading to the success.But not all the merger and acquisition are suitable for all companies.And also it can not always have the positive result.Thus,the study and analyze of choosing reorganized part,valuations and its motivations of being merged has a practical significance.This article studied this case,which is a leading publicly traded companies in tourism industry in 2016.LN holding issuance of shares and payment of cash to buy assets and raise matching funds.Through the analysis of the whole process of the case,including the motivation of reorganization,the purpose of reorganization,the path of reorganization,the effect of reorganization,etc.Framework of this article listed below:First,this article stated the selection background and the purpose of this research.Then summarized the merger motivation and mode,the related theories of asset pricing and restructuring performance.Merger and reorganization's motivation including synergetic theory?agency theory?value undervaluation theory.In which synergetic theory is the most important theoretical support.The theory of enterprise value market comparison include approach,income approach and cost approach.Both sides of the reorganization will choose the best value theory.Generally speaking,the theory of reorganizing performance evaluation include event study? financial analysis and strategic analysis.The specific techniques for analyzing a real case is determined by the length of the time.Second,this article introduced the circumstances of the LN holding's scase,in which including the reorganization party and the reorganized party's basic information,the whole reorganization's procedure,and the post reorganization's situations.Third,this article analyzed the choose of reorganization?the value of asset?post restructuring performance evaluation on a case-by-case basis,pointed out the key features of this reorganization,summarized the content and experience for future reference,gave LN holding the comments and suggestions base on the current tourism industry's challenges and opportunities,and the problems discovered from this analyzation.Combined with the analyzation from above,we came to the concluded of three parts.First for the reorganization,especially for the state-owned enterprise,restructuring performance evaluation reorganization need to be chosen from the specific time and the correct method and this reorganization also need to be fit for the further development of the company.Second,value the asset need the right method,this will be a tragedy for the reorganization.If the estimated value is higher or lower than actual value is not good for the reorganization.Third,we recommended LN holding reduced the completion time for the funding project,and LN holding should consider the reorganization of transportation industry,or other related industries in the future based on the issues and opportunities we have found in this analyzation.