企业并购财务外文文献翻译中英文..docx

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企业并购财务外文文献翻译

（含：

英文原文及中文译文）

文献出处：

《Themodernenterprisefinancialmanagement》「美」JamesC.VanHorne.2014年6月6日

英文原文

EnterprisemergerandacquisitionanalysisoffinancialstatementsAuthor:

JamesHorne

Corporatemergersandacquisitionshavebecomeamajorformofcapitaloperation.Enterpriseuseofthismodeofoperationtoachievethecapitalcostoftheexternalexpansionofproductionandcapitalconcentrationtoobtainsynergies,enhancingcompetitiveness,spreadbusinessplaysaveryimportantrole.M&Aprocessinvolvesalotoffinancialproblemsandsolvefinancialproblemsisthekeytosuccessfulmergersandacquisitions.Therefore,itappearsinmergeranalysisofthefinancialproblemstoimprovetheefficiencyofM&Financehasanimportantpracticalsignificance.

Weneedtousefinancialratiosinanalyzingfinancialstatements.—

—Theanalysisofcomparativefinancialstatementscannotbemadereallyeffectiveunlessittakestheformofastudyofrelationshipsbetweenitemsinthestatements.Itisoflittlevalue,forexample,toknowthat,onagivendate,theSmithCompanyhasacashbalanceof$1oooo.Butsupposeweknowthatthisbalanceisonly-IVpercentofallcurrent

liabilitieswhereasayearagocashwas25percentofallcurrentliabilities.Sincethebankersforthecompanyusuallyrequireacashbalanceagainstbanklines,usedorunused,of20percent,wecanseeatoncethatthefirm'scashconditionisexhibitingaquestionabletendency.

Savingtransactioncosts.M&Amarketisessentiallyanalternativeorganizationtorealizetheinternalizationofexternaltransactions,asappropriateunderthetermsoftrade,businessorganizations,thecostmaybelowerthaninthemarketforthesametransactioncosts,therebyreducingproductionandoperationthetransactioncosts.

Toreduceagencycosts.Whenthebusinessseparationofownershipandmanagement,becausetheinterestsofcorporatemanagementandbusinessownerswhichresultedininconsistenciesinagencycosts,includingallcontractcostswiththeagent,theagentmonitoringandcontrolcosts.Throughacquisitionsoragencycompetition,theincumbentmanagersoftargetcompanieswillbereplaced,whichcaneffectivelyreducetheagencycosts.

Lowerfinancingcosts.Throughmergersandacquisitions,canexpandthesizeofthebusiness,resultinginacommonsecurityrole.Ingeneral,largecompanieseasieraccesstocapitalmarkets,largequantitiestheycanissuesharesorbonds.Astheissueofquantity,relativelyspeaking,stocksorbondscostwillbereducedtoenableenterprisestolowercapitalcost,refinancing.

Toobtaintaxbenefits.M&Abusinessprocesscanmakeuseofdeferredtaxintermsofareasonabletaxavoidance,butthecurrentlossofbusinessasaprofitpotentialacquisitiontarget,especiallywhentheacquiringcompanyishighlyprofitable,cangivefullplaytocomplementaryacquisitionsbothtaxadvantage.Sincedividendincome,interestincome,operatingincomeandcapitalgainstaxratedifferencebetweenthelargemergersandacquisitionstakeappropriatewaystoachieveareasonablefinancialdealwiththeeffectoftaxavoidance.

Toincreasebusinessvalue.M&Amovementthrougheffectivecontrolofprofitableenterprisesandincreasebusinessvalue.Thedesiretocontrolaccesstotherightofthemainbusinessbytradingaccesstotheotherrightsownedbythecontrolsubjectstore-distributionofsocialresources.Effectivecontroloverenterprisesintheoperationofthemarketconditions,formostoverwhoareincompetitionforcontrolofitsmotivesistoseekthecompany'smarketvalueandtheeffectivemanagementoftheconditionshouldbethedifferencebetweenthemarketvalue.

Wemaymakecomparisonsbetweenitemsinthecomparativefinancialstatementsasfollows:

1.Betweenitemsinthecomparativebalancesheet

a）Betweenitemsinthebalancesheetforonedate,e.g.,cashmaybecomparedwithcurrentliabilities

b）Betweenaniteminthebalancesheetforonedateandthesameiteminthebalancesheetforanotherdate,e.g.,cashtodaymaybecomparedwithcashayearago

c）Ofratios,ormathematicalproportions,betweentwoitemsinthebalancesheetforonedateandalikeratiointhebalancesheetforanotherdate,e.g.,theratioofcashtocurrentliabilitiestodaymaybecomparedwithalikeratioayearagoandthetrendofcashconditionnoted

2.Betweenitemsinthecomparativestatementofincomeandexpense

a）Betweenitemsinthestatementforagivenperiod

b）Betweenoneiteminthisperiod'sstatementandthesameiteminlastperiod'sstatement

c）Ofratiosbetweenitemsinthisperiod'sstatementandsimilarratiosinlastperiod'sstatement

3.Betweenitemsinthecomparativebalancesheetanditemsinthecomparativestatementofincomeandexpense

a）Betweenitemsinthesestatementsforagivenperiod,e.g.,netprofitforthisyearmaybecalculatedasapercentageofnetworthforthisyear

b）Ofratiosbetweenitemsinthetwostatementsforaperiodofyears,e.g.,theratioofnetprofittonetworththisyearmay-becomparedwithlikeratiosforlastyear,andfortheyearsprecedingthat

Ourcomparativeanalysiswillgaininsignificanceifwetaketheforegoingcomparisonsorratiosand;inturn,comparethemwith:

I.Suchdataasareabsentfromthecomparativestatementsbutareofimportanceinjudgingaconcern'sfinancialhistoryandcondition,forexample,thestageofthebusinesscycle

2.SimilarratiosderivedfromanalysisofthecomparativestatementsofcompetingconcernsorofconcernsinsimilarlinesofbusinessWhatfinancialratiosareusedinanalyzingfinancialstatements.-Comparativeanalysisofcomparativefinancialstatementsmaybeexpressedbymathematicalratiosbetweentheitemscompared,forexample,aconcern'scashpositionmaybetestedbydividingtheitemofcashbythetotalofcurrentliabilityitemsandusingthequotienttoexpresstheresultofthetest.Eachratiomaybeexpressedintwoways,forexample,theratioofsalestofixedassetsmaybeexpressedastheratiooffixedassetstosales.Weshallexpresseachratioinsuchawaythatincreasesfromperiodtoperiodwillbefavorableanddecreasesunfavorabletofinancialcondition.

Weshallusethefollowingfinancialratiosinanalyzingcomparativefinancialstatements:

I.Working-capitalratios

1.Theratioofcurrentassetstocurrentliabilities

2.Theratioofcashtototalcurrentliabilities

3.Theratioofcash,salablesecurities,notesandaccountsreceivabletototalcurrentliabilities

4.Theratioofsalestoreceivables,i.e.,theturnoverofreceivables

5.Theratioofcostofgoodssoldtomerchandiseinventory,i.e.,theturnoverofinventory

6.Theratioofaccountsreceivabletonotesreceivable

7.Theratioofreceivablestoinventory

8.Theratioofnetworkingcapitaltoinventory

9.Theratioofnotespayabletoaccountspayable

10.Theratioofinventorytoaccountspayable

II.Fixedandintangiblecapitalratios

1.Theratioofsalestofixedassets,i.e.,theturnoveroffixedcapital

2.Theratioofsalestointangibleassets,i.e.,theturnoverofintangibles

3.Theratioofannualdepreciationandobsolescencechargestotheassetsagainstwhichdepreciationiswrittenoff

4.Theratioofnetworthtofixedassets

III.Capitalizationratios

1.Theratioofnetworthtodebt.

2.Theratioofcapitalstocktototalcapitalization.

3.Theratiooffixedassetstofundeddebt

IV.Incomeandexpenseratios

1.Theratioofnetoperatingprofittosales

2.Theratioofnetoperatingprofittototalcapital

3.Theratioofsalestooperatingcostsandexpenses

4.Theratioofnetprofittosales

5.Theratioofnetprofittonetworth

6.Theratioofsalestofinancialexpenses

7.Theratioofborrowedcapitaltocapitalcosts

8.Theratioofincomeoninvestmentstoinvestments

9.Theratioofnon-operatingincometonetoperatingprofit

10.Theratioofnetoperatingprofittonon-operatingexpense

11.Theratioofnetprofittocapitalstock

12.Theratioofnetprofitreinvestedtototalnetprofitavailablefordividendsoncommonstock

13.Theratioofprofitavailableforinteresttointerestexpenses

Thisclassificationoffinancialratiosispermanentnotexhaustive.-Otherratiosmaybeusedforpurposeslaterindicated.Furthermore,someoftheratiosreflecttheefficiencywithwhichabusinesshasuseditscapitalwhileothersreflectefficiencyinfinancingcapitalneeds.Theratiosofsalestoreceivables,inventory,fixedandintangiblecapital;theratiosofnetoperatingprofittototalcapitalandtosales;andtheratiosofsalestooperatingcostsandexpensesreflectefficiencyintheuseofcapital.'Mostoftheotherratiosreflectfinancialefficiency.

Arethestatementsadequateingeneral?

-Beforeattemptingcomparativeanalysisofgivenfinancialstatementswewishtobesurethatthestatementsarereasonablyadequateforthepurpose.Theyshould,ofcourse,beascompleteas

possible.Theyshouldalsobeofrecentdate.Ifnot,theirusemustbelimitedtotheperiodwhichtheycover.Conclusionsconcerning1923conditionscannotsafelybebasedupon1921statements.

Doesthecomparativebalancesheetreflectaseasonablesituation?

Ifso,itisimportanttoknowfinancialconditionsatboththehighandlowpointsoftheseason.Wemustavoidundulyfavorablejudgmentofthebusinessatthelowpointwhenassetsareveryliquidanddebtislow,andundulyunfavorablejudgmentatthehighpointwhenassetsarelessliquidanddebtlikelytoberelativelyhigh.

Doesthebalancesheetforanydatereflecttheestimatedfinancialconditionaft