Valuation And Performance Analysis Of Listed Companies' Merger And Acquisition Of Parent Companies

In the early year of Chinese capital market,in order to be able to log on to the A-share market,many enterprises chose to divest themselves and made the high-quality assets listed first.However,with the vigorous development of capital market and the change of macroeconomic environment in China,this kind of split listing is gradually not conducive to the overall growth of group enterprises.At the same time,with the excessive related party transactions,unreasonable ownership structure,continuous intra-group competition brought about by the split listing the problems are also difficult to eliminate.These problems not only affect the development and growth of the company,but also damage the rights and interests of minority shareholders and hinder the healthy and orderly development of the capital market.Under this background,it is urgent for listed companies to integrate group resources and adjust the ownership structure.Therefore,holistic listing has become the focus of merger and reorganization in recent years,and related research has become particularly important.The case selected in this paper,Wanhua Chemicals merger parent company Wanhua Chemicals,not only the amount of money which is involved in is rare in recent years,but also the speed of the meeting can be described as rapid.Therefore,it has universality and representativeness for other similar merger cases.In this paper,literature research,case analysis and financial analysis are used to systematically study the case of Wanhua Chemistry's acquisition of parent company Wanhua Chemistry.The main purpose of this study is to explore the effect of the merger and acquisition reorganization? Why does this work? What enlightenment will it bring to the merger and acquisition of Listed Companies in the future? The article demonstrates from four parts.The first part is the background and significance of the topic,and the literature review of merger and acquisition and reorganization.The second part combs the concept and types of mergers and acquisitions,and then elaborates the motivation of mergers and acquisitions,performance evaluation and valuation methods.The third part is to introduce the industry background of Wanhua Chemicals and the overall situation of the merger and reorganization industry,followed by the process of Wanhua Chemicals' merger and acquisition of Wanhua Chemicals.The fourth part is a case study,which uses market comparison method and cash flow discount model to analyze the valuation of the merged enterprises,and then uses financial analysis method to analyze the financial data before and after the merger and reorganization.Finally,the conclusion is drawn that the valuation of Wanhua Chemical Company,the acquired party,is relatively low,so the merger and reorganization has a high premium level.In terms of performance,the short-term performance of merger between Wanhua Chemical and parent company Wanhua Chemical is good,but the long-term performance is not clear due to the time.From the perspective of valuation and short-term performance,this merger is successful.Therefore,the main enlightenment of this paper to listed companies' merger and restructuring is: first,actively grasp the policy bias;second,attach importance to the integration and synergy effect of listed companies' merger and restructuring;third,strive to perfect the reasonable transaction structure design.Finally,some constructive suggestions are put forward for listed companies,hoping to provide reference for listed companies requiring merger and reorganization in the future.