A Case Study Of Tianjin Benefo Tejing Electric Merger And Acquisition Of Chengdu Reliance Electric

The rapid development of the economy has become more and more demanding for the company's own competitive advantage.The competition among enterprises has shifted from expanding its share to competing for core competence.It is difficult for companies to make breakthroughs based entirely on their own development.Therefore,mergers and acquisitions have become one of the most important ways for enterprises to grow and develop.Vertical mergers and acquisitions can optimize the resource allocation of enterprises,improve the industrial chain,and break through the bottleneck of development,solving the problems of insufficient experience in cross-regional operation,so as to achieve the purpose of avoiding market risks to a certain extent and forming a core competitiveness with obvious advantages of enterprises,and quickly achieve capital accumulation.At the same time,the development of enterprises will also drive the development of the national economy and contribute to the optimization of the national industrial structure.Due to the complexity of M&A transactions,only one aspect can not fully explain the M&A effect.It is necessary to thoroughly study the various aspects of M&A events and the development after M&A,and conduct in-depth analysis of the difficulties in the process to draw inspiration and It is recommended to provide reference suggestions for companies of the same type with M&A intentions.The article selects Benefo Electric's merger and acquisition of Chengdu Reliance Electric as the research object in 2014.The merger and acquisition has basically completed the expected effect of the previous merger and acquisition,and reached its strategic goal.The merger has a positive effect on the future development of both companies.This paper adopts a combination of case study method and financial analysis method to conduct a comprehensive analysis of the merger process of Benefo Electric's acquisition of Reliance Electric.Firstly,it expounds the related concepts and theories of M&A,then briefly describes the current situation of M&A in the domestic market;then it briefly introduces the basic situation of Benefo Electric and Reliance Electric,and expounds the M&A process.After that,the motivations and synergies of the case,including business synergy,management synergy,financial synergy and cultural synergy,pre-,post-,post-and post-merger risks,and difficulties and problems in M&A were deeply analyzed and inspired.And suggestions,including clear M&A objectives,diversification of financing methods,flexible use of performance commitments and compensation agreements,focus on post-merger integration,strengthen inventory cost control and talent pools.