The Motivation And Performance Of Baocheng's Investment In Merger And Acquisition Network And Zhonglian Transmission Company

Enterprises play an irreplaceable role in the development of the national economy.However,with the development of the economy,factors such as decreasing purchasing power and demand,rising labor costs,etc.have brought certain pressures on the operations of all walks of life.The competition between enterprises has become increasingly fierce.In addition,the stimulation of foreign economies also puts them under greater pressure.Many companies choose mergers and acquisitions as their means of expanding their business operations and optimizing their resource allocation to enhance their competitiveness.The purchase of Baocheng Investment's non-publicly issued shares in this article to acquire Taole Network and Zhonglian Transmission is a typical case of cross-industry mergers and acquisitions to reverse life.In recent years,the pace of economic development in China has been relatively flat and the level of demand for investment has declined slightly.In such a large environment,the market for steel products has become a serious crisis and prices have been declining all the way.This poses a great threat to the steel trade industry.Affected by this,Baocheng Investment's business level has dropped sharply since 2013,profits have continued to decline,and even faced a crisis of demise.In order to continue its operations,the company urgently needs the salvation of external resources,thus enhancing the profitability of the company.Therefore,Baocheng Investment announced in early 2015 that it would acquire the high-quality company Taolei Network and Zhonglian Transmission,hoping to survive the business operations of the two companies and bring benefits to the company's managers and investors.This article takes the Baocheng investment acquisition case as the research object,and systematically discusses the background of the enterprise,the motivation of the M&A,the determination of the M&A target and the result of the M&A.The first part is introduction.It mainly describes the research background and significance of mergers and acquisitions,the purpose and application value of the thesisresearch,briefly describes the research methods used in the articles,and the research status and level at home and abroad;The second part is about the concept of mergers and acquisitions.It mainly includes the description of mergers and acquisitions,types of mergers and acquisitions,motivation theory of mergers and acquisitions,and risks that may exist in the process of mergers and acquisitions.In the third part,the two companies that introduced the merger and acquisition incident mainly analyzed the time,background,implementation plan,and motivation of the incident,and the possible risks before and after the merger and acquisition occurred.The fourth part mainly analyzes the performance after the completion of mergers and acquisitions.The main methods used are analysis methods such as Dupont analysis,Z-index analysis,economic value added,and market added value.From different perspectives,Baocheng invests in mergers and acquisitions.Analysis of performance results in changes in business performance after mergers and acquisitions.The fifth part mainly analyzes the integration actions taken after the completion of Baocheng Investment M&A.Because this time is a cross-industry M&A,the business integration is particularly important.Through the analysis,it is concluded that the company has implemented an ideal merger and acquisition.The integration measures have also achieved good results.The sixth part is the conclusion and inspiration of this article.Through the analysis of Baosteel's investment and mergers and acquisitions case,the impact on the company's operations and other aspects can be derived and it can be used as a reference for different M&As.Through the above analysis results,it can be concluded that Bao Cheng Investment's acquisition of Tao Le Network and Zoomlion Transmission is the company's cross-industry merger and acquisition,which is the key point for companies to continue their business operations.Baocheng Investment gained a new life through this reorganization of assets,improved the capital structure of the company,improved the company's operating capabilities,improved the company's economic strength,and increased the company's profitability,in linewith the company's long-term development.