The Performance Analysis On Jpmf Premium M&A DJN

After years of development in the magnetic materials industry,the industry has become saturated.China's magnetic material production enterprises are still mainly low-end,low value-added products.In addition,with the increase in production costs,product gross profit margins are declining.How to change the current plight of magnetic material production enterprises,whether it should form a new business growth space to improve the operating status,become a common concern for companies in the magnetic materials industry.This article focuses on the performance of Jiangfen Magnetic Material's premium acquisition of Dijing Optoelectronics.In September 2015,Jiangfen Magnetic Materials completed the acquisition of Dijing Optoelectronics.The company's main business became magnetic materials business and consumer electronics components,forming a diversified business development landscape.This article is based on Merger Motivation Theory,M&A Premium Theory,M&A Performance Theory,and previous research results.First of all,we will briefly introduce the basic situation of Jiangfen Magnetic Materials and Dijing Optoelectronics and the acquisition plan.Secondly,we analyzed the causes of the premium of Jiangfen Magnetic Materials and acquired Dijing Optronics Co.,Ltd.,and obtained five major causes such as good synergy effects and the broad prospects of Dijing Optoelectronics.Once again,the analysis of Jiangfen magnetic material premium merger and acquisition of Dijing Optoelectronics performance and reached two conclusions: In terms of financial performance,this acquisition makes both companies have great progress in profitability,growth capacity,etc.;in the market In terms of performance,the short-term performance of the M&A was not good,but the long-term performance was satisfactory.Both M&A parties and market investors received substantial profits.Finally,based on the analysis of the causes of the premium and the results of the M&A performance,four conclusions are drawn:(1)focus on the choice of M&A target;(2)the formation of synergies between the two sides of the transaction can improve the performance level;(3)rational decision-making can form a reasonable The valuation premium rate;(4)The integration of emerging industries and traditional enterprises can help traditional companies out of the predicament.Furthermore,the paper proposes four suggestions:(1)M&A of companies with broad prospects before the merger and acquisition;(2)Listed company should pay attention to the confidentiality of major unpublished information;(3)Reasonable valuation of target companies during mergers and acquisitions;(4)Strong support for the development of target companies after mergers and acquisitions.At the same time,the following three implications are obtained through this article:(1)Mergers and acquisitions contribute to the transformation and upgrading of traditional enterprises;(2)Mergers and acquisitions have a significant impact on the synergies between the two parties' resource integration effects;(3)Setting up performance gambling terms is conducive to the early formation of both parties Synergies.Through the study of this case,it is of significance for promoting the transformation and upgrading of traditional enterprises,and it is of great significance for the diversified development of traditional magnetic material enterprises.