Case Analysis Of ZGNC&ZGBC Merger And Acquisition

Over the past decade or more,the global railway transport equipment manufacturing industry has grown steadily.Railway transportation equipment manufacturing industry is a fast developing industry,which plays a vital role in promoting economic transformation and improvement,and improving international competitiveness.ZGNC and ZGBC are the leading enterprises in China's railway transport equipment manufacturing industry.In 2015,ZGNC and ZGBC launched ZGZC in accordance with the principle of "consistently merging,facing the future,pursuing the same development,carefully planning,robust promotion,and compliance operation",which is a brilliant stroke in the manufacturing history of railway transportation industry and will transform the mode of global railway transportation equipment manufacturing.This merger is a "powerful alliance".For the first time in China,two companies with similar operating conditions and similar assets have achieved similar mergers in the same state-owned enterprises in the same country.Considering the different financial problems in these circumstances and proposing solutions will be helpful to provide empirical reference for other mergers of the central company at present.Therefore,it is necessary to analyze in detail the merger cases of ZGNC and ZGBC.Based on the research results of domestic and foreign researchers in the fields of M&A,M&A and financial synergy,this paper combines case study,accounting analysis and other research methods to analyze the integration action taken by internal integration mechanism after M&A,and through the performance analysis of ZGNC and ZGBC after the merger,it concludes that the M&A has not achieved the desired results.ZGNC and ZGBC have attracted worldwide attention since they announced their merger.The expectations of this merger are very high,but the financial performance analysis of ZGZC has not met expectations.This article wants to find out the reasons and problems that did not meet the expectations in this merger,and analyze the reasons in depth,and give the corresponding solutions.There are three hidden dangers after ZGNC and ZGBC merger:the first is the financial decision-making problem caused by the merger of the same industry.In the short run,because the management concept and management mode of the two companies'management teams have not been effectively integrated and a unified corporate culture has not been formed,it is inevitable that the rival board of directors will inevitably form an inefficient office trend because of disputes.The second is the inefficiency caused by the unprofessional intermediaries.At present,the stock market in China is unstable because in the weak efficient market,the investment banks can not accurately price the company through the secondary market,which causes the stock price of the company can not present the correct value.The third is the inefficiency of operation caused by the complexity of the integration process.The inefficiency of the company's operation is not only related to the decision-making of management,but also to the speed of the company's integration process,so the company should find the direction of development after the merger as soon as possible in order to cooperate with the internal integration.After studying the financial performance of ZGZC,the corresponding solutions to specific problems are put forward.We should optimize the financial decision-making mechanism,improve the construction of intermediary institutions,improve the pricing capacity of secondary markets and do a good job of internal integration.