Motivation And Financial Performance Study Of M&A-Cash Study

In recent years,the characteristics of the "new normal" gives prominence to the economic growth in China,and the process of economic transformation into the period of steady growth at a moderate speed.Under the background of "new normal" in economy,part of the excess capacity of the traditional industry due to the profit margins squeezed,cross-industry mergers and reorganization activities are increasingly active,Mergers and acquisitions(M&A)occurs repeatedly.M&A as a means of obtaining capital,in the later stages of the enterprise development can be seen as a way of growing up.Before that,the scholars at home and abroad do a lot of research and discussion on the subject,and based on research results of former scholars,I select to the Dragon Pipe industry acquisitions EGLS as a case,analyze and discuss the traditional industry cross-industry M&A' behavior.With the enterprise overall strategic intent as a center,analyzing the change of M&A at before and after,and the M&A diversified effect of traditional industry as well as the Dragon Pipe's transverse comparison and analysis with the same industry enterprises,and then have the significance and conclusions of the M&A.Since 2012,with the domestic economic growth rate slowed down,and the transformation of the economic structure of China's industry,traditional industry is faced a series of serious challenges,such as excess production capacity,technological change and other issues.Industry enterprises urgently need to seek breakthroughs and transformation,and look for a new profit growth point of economy,the traditional industry listed companies to emerging industry transformation actively,and through horizontal mergers and acquisitions to broaden the product lines,then enter new markets to achieve diversified development.2014 A shares M&A market is one of the main phenomenon of emerging industry,it presents the explosive growth of M&A.Part of the traditional industry listed company is faced with excess capacity and the fierce market competition,and through M&A to transform the crossover of emerging industry,so as to realize the growth of sales and market value.Since 2014,cross-border restructuring has been played a role in the emerging industry,such as online game,mobile game,television production,culture media.Zhejiang Dragon Pipe Manufacturing Co.,Ltd.(Dragon Pipe)acquired EGLS technology(Beijing)Co.,Ltd.(EGLS),is a type of Chinese traditional industries M&A cases during the period of transition,there are many worthy of our think and use.Based on the Dragon Pipe industry acquired EGLS as the research object,make a description of background,motivation,performance and results of cross-industry mergers and acquisitions.The first part is the introduction,which introduced the research background of M&A,and the thesis research methods and application value,described the research status and level at home and abroad of M&A;The second part is the basic overview of the concept of M&A,make a description of the concept of M&A motivation and performance;The third part is the analysis of Dragon Pipe acquired EGLS,introduce both sides of the companies' profile and analysis the motivation of M&A in method of SWOT and PEST;The fourth part is mainly about the effect of M&A cases,including the market reaction,financial performance and EVA;The fifth part is conclusion and revelation,it summarize the basic conclusion of the article and revelation and advice of the case,as well as the limitations of research.As the national economic growth rate slowed and the development of the industry's transformation,under the drive of entrepreneurial innovation,the market main body of traditional industry has a diversified business structure.In this paper,objectively analyses the whole process of M&A and its influence based on the cases of Dragon pipe acquired EGLS,further studies the M&A motivation,performance,market reaction,and development strategy,as well as the effect of traditional cross-industry's M&A,and puts forward a new understanding and suggestions,cross-industry M&A has significant enlightenment and reference to traditional industry.