The Study On The Financial Integration Of Qingyuan Group's Acquisition Of Qilu Machinery

Mergers and acquisitions are an economic activity that has increased core capabilities through acquisitions and mergers.Globally,mergers and acquisitions have been more and more frequent,and according the reported on December 29,2017 from the Financial Times,the global merger has been over $3 trillion for the last four years,and according to Thomson Reuters,the amount of mergers and acquisitions in 2017 has reached to $3.5 trillion,which marked a record of more than three trillion dollars in four years.In China,2017 is a year for Chinese enterprises to merge,not only the cases of mergers and acquisitions among local companies,but also a large number of transnational mergers and acquisitions,such as SUNAC purchased LETV,GEELY AUTO purchased LOTUS AUTO,CHEMCHINA spent43 billion u.s.dollars tor purchase SYNGENTA CORPORATE,SUNAC purchased 13 projects of WANDA GROUP,etc..Although there are more and more companies in the market to try and acquire,the success rate is not high.The main reason for this situation is that the consolidation work after the merger has not played a role,and the financial integration is a crucial link,which is crucial for the acquisition performance of enterprises.In this paper,the acquisition and consolidation process of Shandong Qilu Machinery Manufacturing Co.,Ltd.is acquired by Shandong Qingyuan Group Co.,Ltd.to discuss the problems existing in the financial integration process and the countermeasures to solve the problems.The paper starts from the investigation and evaluation of research and evaluation of Qilu Machinery,which is in trouble in 2012.First,the paper introduces the basic situation of Qingyuan Group and Qilu Machinery,and then analyzes the motivation of Qingyuan Group to acquire Qilu Machinery based on the Transaction Cost Theory,and the Value Chain Theory.Second,This paper relates the third party assessment and the results of the acquisition.Then discusses the whole process of acquiring business and the financing arrangement of the acquisition process.Again,relates the content of the financial integration in the integration process,including the financial system,financial officers,financial organizations,assets,liabilities and cash flow for a detailed analysis.This paper expoundsthe appeared in the process of financial integration point of risks and countermeasures.And this paper evaluates the results of the financial data from the acquisition.In the end,the experience and deficiency of financial integration.Qilu Machinery is a collective enterprise reformed by state-owned company.It was acquired by Qingyuan Group for its terrible management,and went out to the trouble after the integration.The case has three distinct features,the first one is a private enterprises acquire a collective enterprises,the second one is a downstream company purchase a upstream one,and the last one is a assumed debt acquisition.It has both real representative case and helps for actual operation.It provides a reference and effective plan to reset assets,create jobs and stabilize society for the Chinese government and financial institutions.A private enterprise developing at a high speed need to achieve rapid expansion through mergers and acquisitions.The case has reference and practical significance for private enterprise,which analyzes the risks of integration and provides a solution.This paper provides a method to use small amount of money to complete the acquisition of another company,and a new idea to state-owned enterprises or collective enterprises absorb their bad debts,and a new way to acquiring companies settle the debts of the acquired companies.