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Analysis on the integration of coal enterprise mergers and acquisitions in the financial

Author: ZhangHuiXia From: www.yourpaper.net Posted: 2010-06-01 15:36:35 Read:
keywords: financial acquisition of coal enterprises
Abstract: 2009 years, China continued to coal integration, orderly development as the focus, the implementation of the integration of transformation of small and medium-sized coal mines, promote enterprise integration.At the same time, encouraging large coal enterprise integration and the upstream and downstream industry integration, to improve industry concentration degree.The M & a theory into the coal enterprise integration, in-depth study of the financial integration after merger and acquisition of coal enterprises.
The current our country various coal enterprises more than 30000, of which a considerable part of the mine production capacity of less than 30000 tons, industry concentration degree is very low.In the second half of 2009, the country to vigorously promote energy enterprise merger, obvious feature of this round of merger integration is the integration of long-term strategic consideration based on the behavior of government, new enterprises annual output of 3O million tons / year and the current output of below 90000 tons of small coal mines, or will be large-scale coal enterprise integration, either in disappear within the next two years.Government by not issued mining licenses, gradually closing small coal business.However, the integration after enterprise M & a rapid development at the same time, an undeniable reality is: enterprise merger of financial performance is not optimistic, the existing enterprise, enterprise ownership, financial management and other factors, bring certain influence to M & a success.
agent and the effect of 1 coal enterprises M & A
Reasons of China's coal enterprises M & A is the coal enterprises, the productivity dispersion, backward technology and equipment, structural contradictions, lack of development potential, at the same time, small and medium-sized coal mines scattered, and the safety facilities are not perfect, which leads to the safety accidents in China's coal enterprises frequent.Because coal is a non-renewable resources, the country of illegal coal mines, predatory exploitation, resulting in a huge waste of resources.Through M & A can make China's coal resources on the production capacity, to solve the dispersion problem, but also increase the competitive ability of the enterprise to foreign companies or large domestic enterprises.The enterprise crisis is another cause of merger between enterprises.A coal production enterprise if sustainable business, a good way is to seek the merger and reorganization, which can make an inventory of assets, enable enterprises to survive; at the same time, learn from the advanced management experience, other business management methods, and access to capital, technology support, and enhance the core competitiveness of enterprises.While encouraging state-owned large enterprises to integrate the existing local small mines has three advantages: one is to solve the local small mines do not long, serious waste of resources problem.Mine recovery of large state-owned mine coal mining rate is about 7O, the average recovery rate of less than 2O of local mines, coal mining is deep strata, such a huge waste people cannot see; two can be more effective in stabilizing the market supply.Small mines do not bear the social responsibility, when the market is good, the capacity of the production, once the market is down, shut down.But large state-owned group can provide a stable energy products to market, all-weather service in national economic construction; three is a small mine safety accidents can solve multiple, direct coal.Persistent disorderly competition.
The integration of
financial management system 2 coal in mergers and acquisitions
As everyone knows, the coal enterprises and form the different of all corporate enterprises business nature of the enterprise, its financial system types are as follows.
2.I centralized financial management system
In this financial management system, under strict control of all business and financial activities of subsidiary companies in the parent enterprises, formulate financial policies for the parent enterprises and financial arrangements for staff and financing, investment and profit distribution decision; subsidiary enterprises enjoy little financial decision-making power, is mainly responsible for the implementation and enforcement of the uniform financial policy mother company; subsidiary enterprises performance by parent enterprise accounting system, the size of profit contribution to the parent enterprises become the main standard to measure firm performance.
2.2 decentralized financial management system
In this system, the parent companies to give free of larger enterprises in finance, subsidiary enterprises enjoy decision-making power and management power more, relatively independent financial management.
2.3 integrated financial management system
Centralized financial management system and decentralized financial management system has its own disadvantages, some enterprises will be a combination of the two, the formation of the integrated financial management system.In this system, the decision base headquarters only have significant financial decisions and key financial activities, management direction and strategic issues; subsidiary enterprises according to their specific circumstances of specific, tactical problems.Coal enterprise group financial management system after M & A is a combined effect of many factors results.There is not a unified and fixed mode.If the merger of power is too concentrated, will positively affect the financial M & A of enterprises; and over decentralization may cause the dispersion tendency, influence the interests of the whole group, which leads to financial control.Types of M & A, M & a stepmother companies and subsidiary companies, M & a tight degree of the cultural background, will affect the integrated financial management system of transnational mergers and acquisitions.Considering various factors affecting enterprise must make a choice according to the specific situation of the M & A, both sides.
The integration of
the main finance activities of 3 coal in mergers and acquisitions
The integration of 3.I financing management
After the merger, the parent enterprises need to M & a subsidiary enterprises financing control, the key control point is to control the capital structure.The capital structure reflects the combination of enterprise subsidiary enterprises of various sources of financing.Through the effective control of the capital structure on corporate capital structure optimization, can make enterprises.As far as the enterprise is independent in law, capital structure should be determined independently, at its own cost and risk will affect the enterprise and even the entire group, and the influence of their credit and reputation.Therefore, control of capital structure on enterprise for the enterprise strategic target to consider.Therefore the parent enterprise shall be according to the group's total capital structure, the company's capital structure, enterprise asset's risk, the management risk of the enterprise and other factors, choose short-term debt and long-term debt ratio, duration, scale, make the optimal decision enterprise should consciously the interest payment, repayment of principal in all business as the equilibrium distribution, makes the enterprise's net profit will not change radically, repayment of principal and interest payments.
The integration of the 3.2 investment management
After the merger and acquisition integration of investment management, long-term survival and development of the enterprise group should focus, in the full estimation based the internal and external environmental factors influence the long-term development of the enterprise after merger and acquisition of enterprises on the long-term investment to make overall planning, so as to effectively use of M & A of both the human, material and financial resources, rational, scientific organization the productivity of enterprises, the long-term goal of enterprise development of M & A.
The integration of the 3.3 working capital management
Working capital refers to the enterprise current assets minus current liabilities, it embodies the enterprise in the liquidity and funding arrangements on the effect.A temporary source of current liabilities only liquid assets.The difference of liquid assets than liabilities, the owner's equity or long-term debt for their funding sources.
In order to make the working capital management is in a good condition of enterprise group, first to choose a practical, can effectively consider the risks and rewards of working capital management policy.Working capital management policy in general is the doctrine of the mean, radical and conservative 3.The three policies each have advantages and disadvantages: the radical policy of net cash flow minimum.The greatest risk, but the lowest cost; conservative policy net liquidity of maximum, minimum risk, but its total cost is the highest; between risk and return to moderation type policy is somewhere.The composition of the group facing environment is different, its ability to resist risks of financing ability, is different from the merger of individual enterprises face the situation of II tank.Therefore, according to the needs of enterprise risk and return after merger with the attitude, making the appropriate choices among these three kinds of policy.
The integration of the 3.4 dividend distribution policy
Dividend policy is an important income distribution management policy of enterprise.Before the acquisition of both sides have their different dividend policies, but the two companies combined into a whole, so the need to develop new, adapt to the development of the whole group after the merger of dividend policy.In the profit allocation decisions, recent development interests and long-term interests of enterprise group is a need to balance the contradiction.Dividend distribution level is too low, will make the enterprise short-term interests can not meet the # and dividend distribution level is too high, the retained earnings is too small, is not conducive to long-term development of enterprises, and affect the enterprise long-term development.Therefore, the dividend distribution policy for the protection of shareholder rights and interests integration of M & A, coordinate the interests between the shareholders, to promote long-term stable development of enterprises after merger and acquisition new, stable stock price.The maintenance of corporate image has the extremely vital significance.
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