The Study On M&A Performance Of Yinyi Stock’s Transformation To Automobile Manufacturing

In recent years,the government has issued a series of macro-control policies in response to the soaring house prices,and the profit margin of real estate enterprises is shrinking.Real estate enterprises have begun to think about the road of transformation.Meanwhile,China has begun to vigorously support the development of high-end manufacturing industry.The transformation from real estate industry to high-end manufacturing industry is also a strategic choice for real estate enterprises.The strategic transformation through M&A has its advantages.This paper chooses the cases that Yinyi Stock merged and acquired Bangqi and ARC.After the M&A,the income structure of the main business of Yinyi has changed,which meant that the company had realized the strategic transformation;After the M&A,Yinyi Stock have fallen into debt default.This paper is to analyze the performance of two M&A incidents of Yinyi Stock to judge whether its M&A transformation strategy has achieved good results.Firstly,this paper introduces the research results and related theories on strategic transformation,M&A motivation and M&A performance,aiming at laying a theoretical foundation for the follow-up research.Secondly,the case of M&A is introduced,including the industry background,M&A parties,M&A process,as well as some recent activities related to strategic transformation after the two cases in this paper.Thirdly,the short-term,medium-term and long-term performance of two cases of Yinyi Stock are analyzed in detail.Among them,short-term performance refers to the market reaction;medium-term performance refers to the financial performance;long-term performance is mainly about the achievement of the motivation.The results show that: overall,there is no obvious improvement in the short-term market response;M&A activities have brought positive impact on the financial level,but the impact in the past year is mainly negative,Yinyi has realized the transformation,but no obvious management synergy effect has been achieved.Finally,based on the above analysis results,this paper puts forward the experience and lessons and extends them to other similar merger and acquisition cases.