Research On The Performance From The Company Of New OTC Market Zero Asset Merger

The promulgation of M&A management measures in 2014 provides fertile ground for the new three-board listed companies to carry out M&A.The OTC Marke zero-asset M&A behavior has gradually appeared in the public field of vision and attracted the attention of scholars.In recent years,the wave of innovation and Entrepreneurship of small and medium-sized enterprises has been set off in our country.Under such an era background,the establishment of the OTC Marke market has solved the problem of financing for enterprises,and has also ushered in the "spring" of development for many small and medium-sized enterprises.In 2017,a number of new three-board listed companies,including Shenmao Online,Qishun Science and Technology and Anyue,Xiamen,issued announcements that they would conduct zero-asset mergers and acquisitions.In the new historical environment,why the zero-asset M&A derived from M&A will be favored by the OTC Marke companies,and what are the motivation and performance of the company's zero-asset M&A.These issues need to be further explored in the case of less research by current scholars.This paper attempts to take Jiangxi Huayuan New Material Stock Corporation Zero Asset Merger and acquisition as a case study,starting with the motivation of Zero Asset Merger and acquisition,and then from the process of Zero Asset Merger and Acquisition and the effect of Zero Asset Merger and Acquisition to evaluate the behavior of Zero Asset Merger and Acquisition.The research finds that the synergistic effect of zero asset M&A can bring remarkable effect in enhancing the growth ability of enterprises,but it has little contribution in improving the scale of enterprises' assets.At the same time,the increase of asset-liability ratio in the year of M&A and the increase of management costs after M&A also remind enterprises to pay attention to the impact of liabilities and related costs on solvency and profitability.Finally,the article puts forward the following suggestions for the zero-asset M&A of the OTC Marke company: we should make adequate preparations for the management of accounts receivable before and during the M&A process;pay attention to the background investigation of the target company;evade the risk of debt repayment,establish a guarantee mechanism;and do a good job in the post-M&A integration to control the related cost.This study is helpful to explore the real motivation behind zero-asset M&A,to provide reference for business managers to make correct M&A strategies,to provide relevant basis for how the M&A behavior of the OTC Marke company affects the company,and to make efforts and innovations for updating the relevant data and information of the OTC Marke M&A.