The mysteries behind the word led m & A began to surface

The wave of mergers and acquisitions of listed companies, which began in the second half of 2013, was pushed to a climax in 2014. As of the end of the third quarter of this year, the amount of mergers and acquisitions in the-share market has exceeded 1 trillion yuan, which is higher than the total transaction volume in 2013. However, with the surge in the number of mergers and acquisitions of listed companies, the number of reorganizations that have been stranded until failure has increased significantly. It is reported that 1161 mergers and acquisitions were announced for the first time in 2014, and 21 were announced to be terminated. The mysteries behind the word 'mergers and acquisitions' began to emerge. People in the industry who need to prepare for risks point out that through mergers and acquisitions, the enterprise has achieved expansion or integration of upstream and downstream, diversified development, or entered new business areas to form merger and acquisition effects and business synergy. realize further exploration of financial value and business value. Because of this, the mergers and acquisitions of listed companies have been interpreted brilliantly. However, it is a pity that the vast majority of mergers and acquisitions cannot operate normally. Seemingly cautious mergers and acquisitions make people feel weak in succession. In addition to failure, some of the acquired companies are abandoned and some are mediocre. Some acquisitions themselves seem to create a little news bubble just to stimulate stock prices. The data show that for projects that merge, merge or both, the probability of final failure is between 4080. This means that compared with the initial strategic objectives, the vast majority of mergers and acquisitions will be a failed project. We have seen that more than half of the M & A cases have failed, including the value of integration brought by business integration. Li Zhaohui, deputy general manager of Tencent's investment and M & A department, said that M & A is a highly market-oriented behavior. therefore, when everyone participates, it is likely to be a result of failure to be fully prepared for risks. This has been proved by the market. Buying insurance in one way or another, it is impossible. Especially in the past year, the domestic M & A boom has been heating up, corporate mergers and acquisitions have become a trend, and risks are gathering. Zhou Deping, chairman of Shenzhen Zhonghe Fund Management Co. , Ltd. , believes that when the registration system is implemented, the number of A- share listed companies will also have new changes. When the volume becomes larger, it is a matter of course that the number of mergers and acquisitions increases sharply again. Of course, mergers and acquisitions are also accompanied by risks. For example, there is a high premium acquisition risk. This year, the premium rate of most mergers and acquisitions is above 100. The second is the risk of subject matter speculation. For example, some cases of high premium and seemingly merger and acquisition of high-growth enterprises may lead to the risk of merger and acquisition failure after the company's stock price is speculated high. The third is the risk of cross-border acquisition. When some enterprises are difficult to obtain profits in the original industrial chain, they choose to transform through mergers and acquisitions, but the transformation fails or still cannot obtain profits for various reasons. The main reason for the failure is the failure of the price. Throughout the typical cases of M & A failure, in addition to the common factors such as blocked policies, poor approval, and the financial situation of the company, the profit prospects are not up to standard, there are differences in the evaluation value of the restructured assets. it is often the main reason for the termination of mergers and acquisitions. According to industry insiders, the big obstacle in the M & A process is the bargaining between the two sides. Generally speaking, the asset evaluation of an enterprise is affected by various factors, such as economic environment, industry cycle, stock market trend, etc. The mentality of entrepreneurs will change in various ways. Listed companies, as acquirers, it will also be carefully considered in combination with itself. A project has been discussed for at least half a year to a year. The long cycle also tests the psychological game between the two sides. It is easy to change during the restructuring process that lasts for several months. Chang Jun, chairman of Fengbo Investment, said 7080 of the termination of mergers and acquisitions is caused by inconsistent evaluation values. Hong Tao, general manager of Hongyuan Securities mergers and acquisitions department, also pointed out that the evaluation of differences is indeed the main reason for the termination of mergers and acquisitions. The merger and reorganization of listed companies, especially the acquisition of non-listed companies, more than 60 is a price issue. It is also enough to be seen from the listing announcement. On May 13, 2014, Yuanfang Optoelectronics announced that its merger with Shenzhen advanced optoelectronics was blown up because the two sides could not reach an agreement on the specific terms of the transaction. On January 9, Yuanfang Optoelectronics announced the purchase of assets with a total price of about 65 million yuan. The company said that advanced optoelectronics is engaged in light emitting diodes (LED) The research and development of equipment such as Crystal fixing machines and the completion of the acquisition are conducive to the improvement of the company's overall strength. In addition, in Hong Tao's view, information asymmetry between the two sides of the merger is also one of the main reasons leading to the termination of the merger. For example, in the process of merger and reorganization, the statement of the target is quite different from the actual situation. often lead to mergers and acquisitions failure. Moreover, many mergers and acquisitions are introduced through middlemen. Due to confidentiality needs, verbal communication or existence of different opinions on the subject matter, listed companies cannot proceed after adjustment. For such situations, Chang Jun believes that in the process of contact, the two sides must first consider whether the business philosophy agrees. The problems and difficulties of the acquired enterprises should be fully exposed, the information should be symmetrical, and there should be no reservations. On this premise, the technical highlights and market advantages should be fully presented to obtain a good valuation. If the problem is not fully revealed, it will be exposed sooner or later. You can't deliberately exaggerate the advantage for the immediate benefit and cover up the problem.