Financial Performance Analysis Of Aier Eye Continuous Mergers And Acquisitions

With the emergence of the sixth wave of mergers and acquisitions in the world,the number and amount of mergers and acquisitions at home and abroad are increasing.Enterprises regard mergers and acquisitions as a means of rapid expansion.According to statistics,4175 mergers and acquisitions were realized in 2017,totaling1.62 trillion yuan.Although the amount of mergers and acquisitions decreased compared with 2016,the number of mergers and acquisitions increased continuously and reached the second highest level in history.This shows that the number of mergers and acquisitions of Listed Companies in China is increasing,and the time interval between mergers and acquisitions is getting shorter and shorter.The continuity of mergers and acquisitions of enterprises has appeared The continuous mergers and acquisitions of Listed Companies in China have become a new phenomenon worth studying in the capital market.At the same time,the problem of population aging has become increasingly prominent.People's awareness of diagnosis and treatment of eye diseases has gradually increased.However,due to the uneven distribution of resources in our ophthalmic hospitals,most of them are public hospitals.Specialized hospitals lack the necessary human resources and equipment.To change this situation,our government has promulgated a series of policies to encourage the development of ophthalmic hospitals.It is against this background that Aier Eye develops from a local ophthalmic clinic to the largest ophthalmic service group in the world by adopting the strategy of successive mergers and acquisitions.This paper is divided into five chapters.The first chapter is the introduction,which briefly describes the background,significance,content and methods of this study,as well as the literature review at home and abroad.In the second chapter,it mainly introduces the concepts and theoretical basis related to continuous M&A.The third chapter is mainly based on the specific introduction of the case,first describes the current situation of industry development and Aier Eye,then focuses on the process of M&A activities,summarizes the motivation of M&A,and finally analyzes the integration of enterprises.Chapter 4 is the analysis of the performance of AIR Eye's continuous M&A.Firstly,the short-term performance of AIR Eye is studied by event study method.Then the long-term performance of AIR Eye is analyzed by financial index analysis method,EVA value analysis method and Tobin Q value analysis method.Finally,the synergistic effect of AIR Eye is analyzed andsummarized.The fifth chapter mainly puts forward four enlightenments for enterprises in the same industry.After analysis,this paper finds that the main motivation for the implementation of continuous M&A is to seize market share,establish a complete business chain,and form regional advantages.Moreover,after the M&A,Al ophthalmology has also been effectively integrated.In terms of performance,through the event study method,we can see that the share price of Er Ophthalmology has risen after each merger and acquisition,and its short-term performance is excellent.Through financial analysis,we can see that Er Ophthalmology's growth ability and profitability are increasing,but its solvency and operating ability are declining.Through the EVA value analysis,we can see that the value of the enterprise is increasing,and Tobin Q value reflects the enterprise.The future development is good,which shows that the long-term performance of Al Ophthalmology is constantly improving.Therefore,this paper concludes that enterprises need to formulate a clear strategy,choose the appropriate target companies according to strategic rationality,use a variety of financing means to reduce financial pressure,and finally integrate multiple mergers and acquisitions,so as to achieve expected profits and improve the market position of enterprises.