The Study On The Motivation And Performance Of East China Heavy Machinery M&A Runxing Technology

China's economy is in an important period of transformation from high-speed growth to medium-high growth.Many traditional industries are facing the situation of overcapacity.At the same time,China's manufacturing industry is also facing the pressure of economic environment and industrial restructuring,and it is in urgent need of increasing the added value of products and exploring new profit growth points.At the same time,some intelligent manufacturing industries are mostly in the initial stage or growth stage,still capital and technology-intensive industries,and their sustainable development also depends on the support of capital and research and development.In this case,industrial M&A have become an important means to strengthen the industrial foundation,upgrade the industrial level and promote the sustainable development of companies in the context of economic restructuring and industrial transformation and upgrading.Taking Wuxi East China Heavy Machinery Co.,Ltd.(hereinafter referred to as "East China Heavy Machinery"),an equipment manufacturing enterprise listed on shenzhen stock exchange,as the case company,this paper analyzes the motivation and performance of East China Heavy Machinery industry's acquisition of Guangdong runxing technology Co.,Ltd.(hereinafter referred to as "Runxing Technology").This paper first collects the relevant theoretical literature of domestic and foreign scholars on the motivation and performance of M&A,and then introduces the situation and industry background of both sides of M&A.This paper describes the M&A process of the whole case,and then analyzes its motivation for industrial M&A.At the same time,it compares and evaluates the performance of industrial M&A with the performance evaluation index,and obtains relevant enlightenment,analyze the reasons for the change in performance.The industrial merger and acquisition of East China Heavy Machinery didn't bring short-term wealth effect,but the long-term M&A effect was reflected in the future through the analysis of financial indicators and EVA.As a whole,the industrial M&A of East China Heavy Machinery for the continued development of a strong momentum.Finally,based on the analysis of East China Heavy Machinery practical as well as the full text,from the acquisition target selection,acquisition scheme design,acquisition target valuation,M&A integration of the four angles is obtained combined with industry development and reasonable choice targets,making reasonable mergers or acquisitions smoothly and reasonable valuation,reduce the risk of goodwill and to strengthen the integration and create synergies,strive to provide a reference for other listed companies to carry out industry mergers and acquisitions.