A Case Study On The Merger And Acquisition Of Tianjin Fuzhen By Youli Investment Holding

With the development of China's capital market,mergers and acquisitions have gradually become an effective economic means for domestic enterprises to achieve extension development.According to statistics from Wande China Merger and Acquisition Database,the number of domestic merger and acquisition transactions in 2017 is 1.44 times that in 2015.Many enterprises realize the goal of adjusting development strategy and promoting resource integration through mergers and acquisitions,and acquire the business advantages,professional personnel and professional skills of the acquired party to achieve leapfrog development.Whether mergers and acquisitions improve the value of enterprises,whether they create wealth for shareholders,and whether they affect performance are worth studying.This paper elaborates the research background and significance through the introduction part.On the basis of combing the motivation of merger and the related research of merger performance theory,it explains the research content and research methods,and shows them through the road map.The introduction leads to the case of Youli Investment Holdings merger of Tianjin Fuzhen,introduces the background,basic situation of both sides and purpose of the transaction,and elaborates the process of the transaction and the transaction plan.On this basis,the paper analyses the motivation of merger,and the performance of Youli Investment Holdings after merger of Tianjin Fuzhen.In the case of stock price fluctuation,the market performance is analyzed,short-term market performance results show that investors have reservations about expectations and a more obvious wait-and-see attitude,Long-term market performance results show that investors have higher market expectations for stock prices and merger brings better long-term market effect.On the basis of market performance analysis,financial performance analysis is carried out.The liquidity,security,profitability and growth before and after mergers and acquisitions are analyzed through financial indicators.The results show that mergers and acquisitions improve the return on net assets of Youli Investment Holdings.Although merger causes a short shortage of funds,it brings better profitability and strong growth.The analysis of the improved DuPont analysis system shows that M&A can enhance the company's profitability and increase shareholders' wealth.The analysis of economic added value shows that the economic added value of Youli Investment Holdings has increased after merger,and Youli Investment Holdings merger of Tianjin Fuzhen can achieve the desired effect.Finally,based on the case analysis of Youli Investment Holdings merger of Tianjin Fuzhen,this paper summarizes the Enlightenment of merger,hoping to provide ideas for the merger of other similar enterprises.Enterprises should choose appropriate merger targets and opportunities,formulate reasonable merger transaction plans,and design a plan that takes into account the interests of both sides of merger and chooses reasonable merger under the circumstances of fully defining future development strategies.Payment methods,and pay attention to the integration of resources after mergers and acquisitions.