Study On The Performance Of Serial M&As Of Wanfeng Auto Wheel

China is the second largest economy in the world,and the effect of endogenous growth on economic growth is weakening.The wheel of history brings us to the2020s’.The outbreak of coronavirus pandemic in the Spring Festival of 2020 is blocking the economic development for a short time.Some enterprises can not see the end of the COVID-19,and the resulting mergers and acquisitions will certainly take place.On the way from high-speed development to high-quality development,Chinese enterprises also need to expand scale,optimize resource allocation,enhance enterprise influence and bring sustainable growth through M&A.According to the report of PwC’s Review of the M&A market in 2019 and 2020 outlook released by PwC,the volume of M&A transactions of Chinese enterprises in 2019 dropped by14% to US $558.7 billion,the lowest since 2014.M&A is the way of enterprise development,the need of national structural adjustment and the support of national policies.Wanfeng Auto Wheel is a large listed company of auto parts in China.In the past eight years,it has completed five mergers and acquisitions in succession,thus laying a solid foundation for its sustainable development.This paper is divided into six parts,the first part is the introduction,mainly introduces and analyzes the research background and significance,domestic and foreign literature review,research content and methods.The second part is related concepts and theoretical basis,defining the concepts of M&A,serial M&As and M&A performance,analyzing the theory of M&A motivation and performance evaluation methods.The third part is Wanfeng Auto Wheel’s serial M&As and its motivation.It introduces Wanfeng Auto Wheel’s industry,company situation and M&A process,disentangles the five M&As of Wanfeng Auto Wheel since 2011-2018,and analyzes the motivation of serial M&As.The fourth part is the short-term performance of Wanfeng Auto Wheel’s serial M&As,using the event study method to judge whether the serial M&As events bring short-term wealth effect.The fifth part is the long-term performance of Wanfeng Auto Wheel’s serial M&As,using DEA method and financial statements analysis method,from the horizontal and vertical perspectives,comprehensive analysis and evaluation of the long-term performance of Wanfeng Auto Wheel’s serial M&As.The sixth part are the conclusions and knowledges,summarizes the conclusions and knowledges of Wanfeng Auto Wheel’sserial M&As,and prospects.According to the research conclusion,Wanfeng Auto Wheel’s serial M&As has achieved short-term positive benefits on the whole,but the short-term performance has declined,which may be related to the overconfidence of the management;in the process of serial M&As,the management has a synchronous learning process,and its business situation has improved after rich experience and high level;during the serial M&As,Wanfeng Auto Wheel’s long-term performance is relatively higher.Wanfeng Auto Wheel’s completion of serial M&As gives us some knowledges:Firstly,the development strategy of the acquired enterprise must be consistent to the acquirer’s.Secondly,we should attach importance to the intrinsic value of the acquired.Thirdly,as to overseas M&As,we must be able to bring the aquired industries and technologies back to China.Fourthly,the managers must be alert to their overconfidence.