Case Analysis Of Merger And Reorganization Of J Company By W Urban Investment Company

In recent years,the continuous tightening of the supervision of urban investment companies and the continuous promotion of the three-year plan for the reform of stateowned enterprises have made M&A an important means for urban investment companies to seek transformation and development.From the "three-point method" of Shanghai Urban Investment and production management to Hefei Construction,production and mutual financial assistance to promote development,the transformation of urban investment companies through mergers and acquisitions and asset transfer continue,but there are few successful cases of transformation from district and county investment companies to operating state-owned enterprises.In this context,this paper takes the merger and reorganization of J company by W urban investment company as a case,adopts the combination of financial and nonfinancial analysis method,horizontal and vertical comparative analysis method,and based on the efficiency theory and government behavior theory,makes a vertical comparison with the five-year data from 2016 to 2020 and September 2021,and makes a horizontal comparison with other comparable urban investment companies in Chongqing and leading enterprises in the copper processing industry.The study found that covid-19 W city seeks transformation,J company seeks to get out of difficulty,and Wanzhou area inviting investment demand constitutes the cause of restructuring.After reorganizing,although it has produced positive effects such as multiple business structures,improved operation capacity,increased financing quota,and good management synergy,the factors such as the low correlation between merger and acquisition,core competitiveness,lack of advantages of financing strategy,and influence of new crowns pneumonia also caused deterioration of the capital structure.Negative effects such as declining profitability,heavy debt burden,and serious nonoperating funds.Because of the above problems,w urban investment company should implement guarantee in the following aspects in the future: first,vigorously develop the main industry of copper products,second,improve the operation capacity of various businesses,third,accelerate the speed of debt resolution,and fourth,establish a normalization mechanism for epidemic prevention and control.Because of this,based on the experience of cross-regional mixed M&A carried out by W urban investment company,this paper finds that effective M&A can bring a multiplier effect to enterprise development and promote transformation and development.However,we should also pay attention to the risks of reorganization,and we should not blindly carry out M&A business and "settle things together".For M&A enterprises,the subject matter should be reasonably selected before M&A and the integration and coordination should be strengthened after M&A.for the government,providing appropriate policy support is very important for the urban investment company to complete the reorganization and realize the integration and coordination as soon as possible.It is hoped that the above experience and enlightenment can not only help w urban investment company in the stage of reorganization and integration to clarify its future development ideas and realize the motivation of M&A as soon as possible but also provide some ideas and references for other district and county urban investment companies still at the crossroads of transformation.