Xj Group Into The State Grid Performance Evaluation

M&A is an important form of corporate reorganization of assets, but also a special kind of corporateinvestment activity, mergers and acquisitions is a double-edged sword The success of mergers andacquisitions can produce a synergistic effect, conducive to the rational allocation of corporate resourcesand fully utilized, thereby to bring huge profits; mergers and acquisitions fail, then back to the enterprise abig burden, and may even lead to corporate bankruptcy. M&A performance evaluation is an important toolfor decision-making and even M&M test success, but also an important part of the management inmergers and acquisitions.With the development of society, intensified market competition, mergers and acquisitions, andmergers and acquisitions have become an inevitable choice for most companies. Chinese enterprises arebecoming increasingly active in mergers and acquisitions, restructuring and further development of themarket in the new era of the industrial structure, accelerate the various M&A activity, mergers andacquisitions not only can quickly expand the production scale of enterprises, improve the corecompetitiveness of enterprises, increase business-to-market share, but also can reduce production costsand merger transaction costs within the enterprise product products, create synergy in financial andmanagement as well as management, conducive to the integration and full utilization of resources. But it isworth noting that if the desire of M&A activity increased as expected returns to shareholders, whether theperformance of enterprises has increased the role and whether it helps enterprises to create more socialvalue? These are acquisitions and mergers and acquisitions were of concern.In this paper, the State Grid XJ Group’s acquisition of case analysis, from the perspective of theacquirer’s acquisition performance through analysis of financial indicators and changes in EVA, while somenon-financial indicators assist to evaluate the performance of the acquisition, experience and lessonslearned in order to provide guidance for the development of China’s M&A plans and strategies. This paperfirst introduces the research background and significance, as well as mergers and acquisitions motivationtheory, the theoretical basis for this study, and the acquisition of National Grid case XJ Group introduced,and M&A performance evaluation and analysis, but also on the mergers and acquisitions changes related businesses and equity brought for analysis. In this paper, a number of selected financial indicators andnon-financial indicators and EVA indicators, data acquisition and post-acquisition three years before theyear of evaluation and analysis, and finally to draw conclusions and make recommendations andinspiration.In this paper, the use of a standardized research methodology combines research and case studies,select and analysyed some acquisition data and post-acquisition year comparison of the previous threeyears, at the choice of indicators, this paper still choose the traditional financial indicators, while addingEVA evaluation, assisted some of the research and analysis of non-financial indicators, also introducedDuPont analysis system to analyze the case of mergers and acquisitions for the performance evaluation. Inthis paper, there are some shortcomings, due to the selected case is state-owned enterprises mergers andacquisitions, and is related to the livelihood of the power industry, affected local governments and nationalparticipation, and general private mergers and acquisitions will be different, but This paper is a case studyof the election, its representation is not strong enough, the study compares the financial data is difficult tocollect and selected financial indicators is limited to the case of M&A performance evaluation is notcomprehensive enough, the findings of the case may have some impact.