Research On L Company’s Performance Of Continued M&A

Mergers and acquisitions is an important means of its rapid development,based on the synergistic effect of mergers and acquisitions will make its benefits to achieve rapid improvement.But there are many enterprises in the M & A activity did not achieve the original synergies,how to evaluate the performance of mergers and acquisitions has become the focus of academic attention.This paper studies the performance of L Company’s continuous M & A between 2011 and 2016,taking the famous company L of public relations industry as a case.The first part is the introduction,mainly introduces the research background,the research content and the method,and summarizes the related research on the domestic and foreign M & A performance.The second part is the concept and theoretical basis,mainly introduces the related concepts of M & A,and briefly introduces the theoretical methods involved in M & A.The third part compares the different enterprise performance evaluation methods,and finally chooses to use the factor analysis method to establish the enterprise M & A performance evaluation model.The factor analysis method establishes the M & A performance index system to integrate the financial and non-financial indicators,Profitability,solvency,operational capacity,growth ability and management ability of five aspects,from the overall point of view of the M company’s performance of the full evaluation of mergers and acquisitions,help enterprises to accurately understand the performance of its continued M & L company M & A performance evaluation foundation.The fourth part is a case study of L’s continuous M & A,which describes the basic situation of L Company and the main M & A activity,and analyzes the motivations of L’s M & A activity by using Porter’s five-force model.Management of the subjective motives,the company to enhance the competitive advantage needs and market growth pressure driven three levels of motivation.The fifth part is the evaluation of M’s M & A performance.It mainly uses the M & A performance evaluation index system and some financial indicators.Based on the data of L Company and the relevant data of the Company from 2010 to 2016,the profitability,solvency,Operational capacity,growth capacity and management capacity of five aspects of analysis,in order to determine the performance of L mergers and acquisitions.L M & A performance in the overall decline in the trend,did not play a very good synergies,in addition to growth capacity,the other aspects of the capacity of most of the decline in varying degrees,especially the greater pressure on the operating conditions.The article argues that L’s ongoing M & A activity only drives the increase in quantity,but has not yet promoted qualitative improvement.These are mainly related to L’s over-aggressive M & A strategy,M & A agreement deficiencies and insufficient management synergies.Finally,the conclusions and related recommendations,and the limitations of the paper to explain.In view of the problem of declining enterprise performance in L Company’s continuous M & A,the paper puts forward the choice of L’s M & A target to adapt to the development trend of the industry.In addition,we should pay attention to the integration after M & A and the control of related risks,set up the gambling agreement scientifically,The Hoping to be able to improve the performance of future M & A performance.