The Case Study On Synergy Performance Of M&A Between SK & YT Company

In today's world,the wave of M&A is in the ascendant.M&A is not only an important means of enterprise development and expansion,but also a choice for enterprises to survive.YT Company,as the leading enterprise in the supply chain listed enterprises,is caught in the dilemma of capital chain because of China's structural adjustment and its own business development in recent years.So YT Company urgent need of liquidity funds to alleviate the crisis.In this context,YT company transfers shares to SK company in order to introduce capital and obtain vitality.SK Company,a powerful state-owned capital investment company,has acquired the control of YT Company after two mergers.Generally speaking,through the transfer of control rights,if the enterprise succeeds in obtaining the synergistic effect,it can achieve the purpose of enhancing the comprehensive competitiveness of the enterprise and improving its earnings and shareholder value.However,in this case,YT company is facing the economic background that the state has strengthened macro-control over the capital market and the risk of equity pledge of a large number of listed companies is increasingly prominent.In such an economic environment,could YT company tide over its difficulties by transferring control to professional state-owned capital investment companies,and could the transfer of control produce synergies between the merger and acquisition parties? In this paper,the financial ratio analysis method and event research method will be used.There are many criteria for evaluating the success of M&A,among which the acquisition of synergistic effect is an important basis for judging the success of M&A.In this paper,synergistic effect is selected as the research focus,and whether the enterprise produces and obtains synergistic effect is taken as the judgment basis for the success of M&A.Combining with the merger case between of SK Company and YT Company,the paper evaluate synergistic effects through according to relevant theories and methods.First,the paper use financial ratio analysis to evaluate the synergies in manage and finance by using the change trend of the accounting data and financial ratios.Second,the event study method is used to test the impact of the transfer of control on enterprise value and calculate the change of corporate value before and after the event.Through analysis and calculation,this paper comes to the following conclusions: 1.The transfer of control rights has brought synergies to both sides of the merger and acquisition,and YT Company's value has been improved,which is conducive to the goal of maximizing the value of the enterprise.2.After the transfer of control right,the risk of equity pledge may lead to the failure of synergistic effect between the two sides of the merger and acquisition,so the control of equity pledge risk should be attached importance to.3.In order to prevent the M&A risks caused by the transfer of control rights,enterprises must identify the synergies before M&A.According to the conclusion,relevant suggestions are put forward,including that enterprises should pay attention to their own strength development,optimize the financing structure of enterprises,can not rely on equity pledge financing.Only after the transfer of control rights to carry out a comprehensive scientific integration can promote the realization of the synergistic effect of control rights transfer.