The Performance Evaluation Of The Consolidation Of Leike Defense And Keyway Technology INC

Since 2014,the merger and acquisition has been looked as a “shortcut” of the firms' transformation and upgrading.The number of the economic activity are increasing rapidly.Whether the M&A can bring positive effect?To solve this problem,this article selects Leike Defense M&A Case which is typical for research.Leike Defense belongs to manufacturing industry which happened the largest number of the M&A cases in 2015,.Leike Defense megered the target company in order to advance its goal of transformation and upgrading in 2015.This paper studies the performance of its M & A by establishing a performance evaluation system.At present,studying the fluctuations of stock prices and financial indicators are widely used by domestic scholars to conduct empirical study of the performance of corporate M&A.But this paper chooses different research perspective that takes the corporate performance of Leike defense after mergers and acquisitions as the research object,bases on the analysis of EVA and financial indicators,and follows the idea of studying the overall value of Leike Defense and the completion of specific M&A motivations to explore whether the transformation through corporate M&A can enhance the M&A performance and analysis of the reasons.Specifically from the following aspects:First of all,through the study of domestic and foreign research literature,this article elaborates M&A?M&A performance?EVA?M&A motivation and other related theories;secondly,I introduce the basic situation of Leike Defense and its target company ? the process of M&A and analyzes the motives of M&A;then,I establishe the M&A performance evaluation system based on EVA and financial index analysis by using the 2014-2016 Leke Defense financial statements data and the enterprise announcement information to carry out the M&A performance evaluation analysis.The following conclusions are drawn from the analysis:The analysis of the changes of the economic value added in quarterly by the EVA method shows that M&A does not create the expected value to the shareholders of the enterprise;Based on the financial indicators to analyze whether the mergert target is completed shows that the company's solvency and development capacity is increasing,but many other indexes such as profitability not reach targets.The study believes that at least from the current point of view,the M&A did not havethe positive effect on M&A performance for Leike Defense.Finally,according to the actual situation of Leike Defense,this paper puts forward some suggestions for improvement from the angle of enterprise and the market.