A Case Study Of Series Acquisition Motivations And Performances Of Wolong Electric

China's manufacturing industry is in a new stage of high-quality development and industrial transformation and upgrading.The strategies of series M&A are conducive to the realization of technological innovation,transformation and upgrading.Facing the low price competition of domestic brands and the technical advantages of international brands,Wolong Electric adopts the strategy of series merger and acquisition to obtain key assets,enhance the core competitiveness and strategic position of the enterprise,and realize the high-speed development mode of the enterprise,and becomes the leading enterprise in the domestic motor industry.Based on the above background,this paper studies the M&A motivations,innovation performance and long-term and short-term performances of Wolong Electric,and uses case study method to analyze.First of all,based on the industry background of Wolong Electric,this paper studies its M&A motivations by combining resource-based theory,market power theory and synergy theory.Secondly,using innovation performance indicators to study innovation ability of enterprise.Finally,from the short-term performance and long-term performance two measurement methods to explore the performances of Wolong Electric serial M&As,judge whether the original M&A motivations are realized.The conclusions of this paper are as follows:(1)The M&A motivations of Wolong Electric include acquiring advanced technology,improving market power and brand awareness.(2)The innovation ability of Wolong Electric is good as a whole.(3)From the perspective of short-term performance,along with the increase of M&A times,the overall short-term performance shows a trend of decline first and then rise,which brings positive short-term performance to the enterprise.(4)From the perspective of long-term performance indicators,the growth and profitability of enterprises perform best.The pressure of debt is relatively large,and the turnover rate of accounts receivable and total assets is slightly weaker than the industry average,but in the later stage,there is a continuous positive trend,and the gap between the two is gradually narrowing.(5)It has obvious comparative advantages with competitors,has strong competitiveness in the motor market,and can cause certain threats to competitors.