The Case Analysis Of NYGF M&A TRX

Reform and opening in China has started over 40 years.In these decades,market economic development is very rapid In this environment,enterprises begin to expand themselves by merger other companies,a more convenient way,for their development needs.So in these years,M&A market in China is increasingly active.On the other hand,in recent years,the government has also introduced some policies to promote the integration of mergers and acquisitions for macro consideration,which further stimulates the M&A of enterprises.At the same time,securities market in China has gradually completed multi-level construction,and the construction of the OTC market especially the new three board market is increasingly perfect.In 2013,the new three board market began to expand.In the next years,the number of listed companies surged.Especially at the end of 2015,the number of listings of the new three board reached the highest lever in history.Although the development of the new three board market is rapid,the problem is following.For example,the market blindly expanded but the number of investors not increased,which has made financing of the new three board listed companies difficult.At this point,the acquisition of listed companies has become an opportunity for the further development of the new three board companies.At the same time,these enterprises have also become important direction for listed companies to choose M&A targets companies,for the industry of these enterprises multifactor and the transparency of information,the standardization of operation.In this context,this paper selects a case of mergers and acquisitions between listed companies and the new three board companies,NYGF M&A TRX to study.First,the case involves a large amount of attention and has a discussion value in terms of valuation rationality.Second,the merger company and the target company are in different industries and belong to diversified mergers and acquisitions.Third,the payment method is the combination of cash and equity,which is more complicated than pure cash or pure equity payment,and has comparative research value.This paper mainly uses the methods of literature research and case study to analyze the case.In the literature review section,the author summarizes the related literature at domestic and abroad on M&A motivation,M&A performance and OTC market.In case analysis section,this article firstly introduce the basic situation of mergers and acquisitions both sides to make,and summarizes the M&A transaction process,then analyse the motivation,the selection of payment methods,the high valuation problem and the performance of the M&A case.The last section,based on above analysis,some advice for companies who are desired in M&A to purchase the new three board companies is proposed.Firstly,before the M&A,the company should select target according to the concept of strategic cooperation and development.Then,the company should estimate the value of target company reasonably.It's also necessary to design a reasonable program of M&A including transaction consideration and optimal payment methods.Last but not least,focus on the integration of management and operations after M&A,in order to maximize the performance of M&A.