Case Study Of M&A Under The Background Of Enterprise Transformation And Upgrading

In today’s rapid development of science and technology,the decline of traditional enterprises in the modern economic environment,many poorly operated enterprises choose to transform and upgrade to achieve corporate rebirth,which also makes the mergers and acquisitions in recent years increased,but not every company that makes acquisitions has obtained new profitability,through mergers and acquisitions to achieve transformation and upgrading only a small number of enterprises,most of the enterprises because of the new industry is not familiar,or the merger before the full investigation led to follow-up business problems,the problem of capital shortage caused by mergers and acquisitions has been magnified,As a result,the company went bankrupt.This paper studies the successful transformation cases of Furi Electronics’ merger and acquisition,summarizes the experience in the transformation process,and provides valuable suggestions for more enterprises preparing to transform and upgrade through mergers and acquisitions.Furi Electronics is chosen in case selection because it has experienced two transformations and upgrades,through the difference in the results of the two transformations can be easier to compare the impact of different strategies implemented,first collect the company situation before and after the transformation and upgrading of Furi Electronics,compare it to find out the differences between the two transformations and upgrading,because it is the same company so it has comparative value,its preparation before transformation,M&A agreement signing and post-merger integration are sorted out,and secondly,financial data before and after transformation and upgrading are collected.Taking the M&A event as the node,in the financial analysis to compare the solvency before and after the merger,profitability,etc.,in the non-financial information to compare the growth ability and R & D capabilities,through the comparison of these information to confirm that the acquisition of Furi Electronics is very successful,again by summarizing the successful experience of Furi Electronics,from which to find reference experience,and finally for enterprises that need to transform and upgrade to provide suggestions with certain reference value.The conclusion of this paper is mainly from three perspectives,namely before the merger,the signing of the merger agreement and the integration after the merger and acquisition,first of all,before the merger,enterprises need to recognize whether they want to improve profitability through transformation and upgrading,the first and most important step is to select the right industry and target enterprises for transformation and upgrading,because it is usually a cross-industry merger and acquisition,so the information asymmetry between the two sides is also increased,in order to select a target company with good development prospects,full investigation is necessary,Master the ability and financial status of the target company,and judge whether it has the intention to be acquired,the usual acquisition behavior will bring a lot of capital to the target company,if the target company is in a situation of lack of financial support,its willingness to be acquired will be greatly increased,followed by the signing of the merger and acquisition agreement,profit indicators and non-profit indicators set at the same time can better urge the target company to complete the performance commitment,but also can make the target company get more action,and finally the post-merger integration,If it is entering an emerging industry,giving the target company a certain degree of independence will help it enhance its core competitiveness,and after entering the emerging industry together,it is necessary for both parties to work together to maximize the synergy effect.