Research On The Financial Performance Evaluation Of Gome In The Background Of "Internet +"

The rapid development of the internet brings traditional home appliance retail trade serious crisis as well as plenty of opportunities. Currently offline market is continuously eroded by online sales. In the face of crisis, traditional home appliance retail enterprises sought to develop online sales channels. Gome built its own online mart in 2003, and in 2007 Gome attempted to set up shop in taobao mall. However, the development of Gome’s online sales channels was still slow and far from satisfactory until 2010. It’s an efficient way to solve the problem of slow development by merging an existing electronic business company. So Gome chose to merge Coo8 to improve poor operation and management of its own online sales platform. This article is aimed to evaluate whether or not to achieve the expected performance by analyzing the motivation and performance of the mergers and acquisitions.The article firstly describes the background and process of current mergers and acquisitions and analyzes present situation of home appliance retail trade by using Michael Porter’s Five Forces Model. Through these analysis results we concludes the motivation for the mergers and acquisitions. Secondly, we took an analysis of debt repayment capability, operation ability, profitability and growth capacity of Gome before and after the mergers and acquisitions by using accounting method. The results show that the mergers and acquisitions create no significant increase of financial performance, even affect debt repaymet capability, operation ability. Finally, the causes of performance decline are analyzed and several suggestions and countermeasures are made based on current performance evaluation results.