Case Study On The Failure Of Assets Reorganization Of Citic Guoan Wine.,LTD

The reorganization of a listed company generally refers to the transaction that the company changes its legal structure or economic structure in addition to its daily business activities,and its situation includes asset restructuring and debt restructuring.Asset reorganization is an important means for enterprises to expand their scale,change their operation status and realize their strategic development plan.Taking Citic Guoan Wine co.,LTD.as an example,this paper discusses from six parts.This paper mainly analyzes in detail the causes and causes of the failure of the material assets reorganization of CiticGuoan Wine co.,LTD.and puts forward relevant suggestions on the causes of the failure.The major asset restructuring of CiticGuoan Wine co.,LTD.is mainly due to the poor profitability caused by the continuous downturn of its main business.It wants to diversify its development,diversify risks and increase market share through cross-border restructuring.Secondly,the poor business performance leads to the shell protection pressure of enterprises.CiticGuoan Wine co.,LTD.have been warned of the risk of delisting for many times,so they wear the hat of special treatment by ST.Therefore,they want to introduce high-quality assets quickly and enter new industries through this asset restructuring,so as to realize profits and shell protection.For the whole industry,the domestic wine industry is subject to the invasion of the foreign wine market as well as the domestic liquor and beer market,so the enterprise needs to make strategic adjustment,realize diversified management,and lay a foundation for the long-term development of the company.As for the reasons for the failure of the material assets reorganization of CiticGuoan Wine co.,LTD.,this paper summarizes as follows: First,the stock price of the listed company declined seriously during the reorganization due to the sudden change of the capital market,which led to the imbalance of the assets between the two parties.Second,the decline of government subsidy policy makes it impossible to guarantee the profitability of the target company.Third,the transfer of the underlying company's assets is difficult,leading to the valuation of the underlying company's assets doubt;Fourth,the dereliction of duty of the intermediary to the target company without a comprehensive understanding of the asset restructuring;Fifth,the valuation of the underlying company is not reasonable,resulting in a deviation in the valuation of the underlying company's assets.In this paper,it is mainly the above five reasons that lead to the failure of asset restructuring.In this paper,five reasons for the failure of reorganization are put forward.First,listed companies must make a good adjustment mechanism to cope with market changes before asset restructuring.Second,in the appraisal of the underlying company's assets,we must pay attention to whether there are obstacles in the transfer of the underlying company's assets.Thirdly,the evaluation of the target company's subsequent profitability must be objective and rational,with comprehensive consideration given to the enterprise itself,market trends and government policies.Fourth,in the selection of evaluation of intermediary agencies,must ensure that the intermediary has independence,professional,due diligence and other basic elements;Fifth,the use of scientific and reasonable methods and rational professional attitude to the target company to evaluate.Through the research and analysis of the material assets reorganization of CiticGuoan Wine co.,LTD.,the theory of assets reorganization is combined with specific cases to enrich the research literature of assets reorganization and provide some Suggestions and inspirations for listed companies and other types of company assets reorganization.