A Case Study On The Merger And Acquisition Of Qumei Household At A Premium

Our country's economy for many years came second in the world,just behind the United States,not only shows the overall strength of the economy in our country,also predicted China will play a more and more important role in the global economy,in recent years,China's listed companies as the main parties for more and more examples of mergers and acquisitions overseas assets,changed the past as the situation of the acquired assets,countries also encourage enterprises to "go out",most enterprises will adopt this way the scale expansion of its own,it is because this way than internal expansion,take shorter,work faster.With the rise of the merger and acquisition boom,there are also many risks.In order to succeed in the acquisition,merger and acquisition companies often pay a high premium for the underlying assets,which on the one hand leads to the company's tight cash flow and great debt repayment pressure,on the other hand,it also bears the risk of goodwill impairment to drag down the company's performance and reduce the asset quality of the merger and acquisition companies.China is in a critical period of economic transformation.Economic growth has been transformed from high speed development to high quality development.Excellent m&a can not only improve their own asset quality,but also promote the optimization and upgrading of the industry.Household industry is closely related to the livelihood of the people just need to industry,after the early stage of the high speed development,also from extensive growth to the intensification of quality improvement,sibutramine household as a leading household brand,the high premium of mergers and acquisitions overseas assets were case studies,for industry to explore new market,choose the financing way and the payment,to preventing risks of mergers and acquisitions and integration of enterprise resource,etc,has a certain application value.China's home furnishing industry started late,there are few large enterprises in the industry,such as ikea international well-known home furnishing brand is very rare,in the international competitiveness is not strong,this also prompted domestic home furnishing enterprises to seek out well-known brands to acquire,in order to complete the global layout of enterprises.Case studies in this paper the premium of sibutramine household m&a process,to find the country's relevant industrial policy,industry development status and trend are analyzed,refer to the m&a and premium mergers and acquisitions of related literature at home and abroad,reviews the study of mergers and acquisitions and premium m&a theory foundation,collects and analyses the announcements of mergers and acquisitions of listed companies,review and disclosure of various data,finally launched on the analysis of the case.This paper is divided into six parts from the whole,the beginning of the article is the introduction;The second chapter reviews the related concepts and theories.The third chapter introduces the cases.The fourth chapter is the case analysis part;The fifth chapter is case summary and Suggestions.Chapter six is the conclusion and prospect of this paper.At first,this paper also introduces the case,then was analyzed,and the results of the analysis of sibutramine household on the underlying company valuation is not reasonable,the evaluation result is higher than the acquired company's shareholders'equity value,belongs to the premium mergers and acquisitions,m&a consequences of its premium in the capital market characterized by continuous drop in share prices,performance losses after the merger has not been repaired prior level of profitability,the company who raise funds to bear the huge debt,debt paying ability has fallen sharply,capital chain tight,the profit forecast of the target company is too optimistic,goodwill impairment risk is extremely high,and the winning company merger and acquisition of the performance by the promise,Great damage to the rights and interests of minority shareholders.