Analysis Of M&A Motivation And Performanceof Rastar Group And Tian Tuo Technology

Nowadays Merges & Acquisitions has become a hot concern of entrepreneurs.M & A can promote the optimal allocation of resources for both enterprises,improve cooperative efficiency between enterprises and impel the achievement of synergy,thus enhancing the enterprise market competitiveness.With the diversification of the economy,market competition is becoming increasingly fierce.To achieve unwavering success,enterprises should continuously upgrade the core competitiveness and improve the business performance.There are no doubt so many ways in which enterprises can extend their strategic blueprints,but M & A have become one of the most important ways in today's marketplace.According to the data of recent years,the number of M & A deals between domestic and international enterprises has been constantly rising.M & A is not the best choice for enterprises to develop and grow,but it can indeed help enterprises to achieve their goals quickly,meanwhile it has a significant impact on the development of the whole industry and economic market.It is true that the number of M & A transactions is very large,but it doesn't mean that each deal of M & A turns out successful.Rather,the dramatic increase of the M & A deals indicates the intense market competition.And just for this reason the results of M & A can also be unsatisfying.Studies have shown that the risk of M & A is actually very high,especially oversea M & A.Therefor,in order to study whether the development of M & A is in line with expectations,whether economies of scale is realized,research of M & A performance emerges in response to those needs.M & A Performance refers to the development situation of enterprises in strategic development,in financial status and so on during a certain period after the completion of M & A.And the research of M & A performance is to study whether the expected results are achieved or not,whether the enterprises is developing in the desired direction after the M & A.With a brief overview of the basic theory of M & A and introduction of the performance evaluation methods,this paper presents concretely the process of Rastar Group's(Xinghui Auto Model co.,Lt)M & A as well as its main features,and analyses its motive of M & A through the research of the value of target company to the Rastar Group and so on.Proceededfrom effects after the completion of M & A,this paper comprehensively analyzes the non-financial indicators of Rastar Group after M & A as well as financial indicators from year 2011 to 2015.Whether the total performance of Rastar Group after M & A is improved or not,is also researched by different means of performance analysis.At the end of this paper,it analyzes the deficiency of methods for research of M & A performance and accordingly proposes potential solutions as well as suggestions about M & A for the other enterprises.