April 29, 2024

Liu Jianyun: Analysis of important factors to consider in mergers and acquisitions

In recent years, the wave of investment in the LED industry has been heating up and sweeping the entire capital market. Foreign capital, state-owned enterprises, private enterprises, venture capital and funds have poured in. Many companies that were originally traditional industries are also difficult to be lonely. They have joined the ranks of LEDs. For a time, the whole industry is crowded with people, and the cheques are waving and lively. At the 2012 High-tech LED Conference, the participating companies have heated discussions on LED industry investment, mergers and acquisitions and other topics.

In the LED industry capital market under the global economic crisis sponsored by Huarui Investment, Zong Peimin, Chairman of Huarui Investment, Liu Jianyun, President of Lihe Qingyuan Venture Capital, and Tong Ziping, Vice President of Tongchuang Weiye Venture Capital, invested in LED industry Expressed their views. Mr. Wang Junfeng, the guest of Junlian Capital, Mr. Tian Chongliang, Director of the IPO Business Unit of the High-tech Industrial Research Institute, and Mr. Shi Xiaoping, Manager of the M&A Business Department of the High-tech Industrial Research Institute, held a round-table discussion.



Liu Jianyun, president of Liyuan Venture Capital, believes that M&A is only a tool, which often occurs in the growth period of the enterprise. It occurs in an increasingly fierce industry and occurs in the process of resource matching. M&A is only a normal phenomenon.

“M&A itself is composed of two parts. The first part is the value of the company’s mergers and acquisitions, the second is determined by the transaction value of the company, the good value of the merger and the reasonable transaction structure. There is no way to have a reasonable transaction structure risk. Completed.” Liu Jianyun believes that the value of the company’s M&A is the market and customers, and the market and customers of the company are meaningful to the acquirer. At present, many mergers and acquisitions are large enterprises to acquire small enterprises, more considering the technical factors, as well as the team, the team will make the potential big enterprises look at the small and medium enterprises because of the complementary factors. Capacity, channels and networks are also important factors to consider in mergers and acquisitions. The difficulty of mergers and acquisitions lies in integration, especially in China and overseas.


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