Motivation And Performance Analysis Of Shandong Ruyi Group's Acquisition Of French SMCP Group

At present,China's garment industry is in a period of transformation and development,facing the transformation of the development model of production and sales to product design,creativity,and brand influence.The high added value of the apparel industry is mainly concentrated in the research and development and design of products.At present,there is a clear gap between the two aspects of China's garment industry and the international advanced level.The recognition of clothing independent brands in domestic and foreign consumer groups is not high.In order to narrow the gap with international apparel companies,some apparel companies in China have adopted multinational mergers and acquisitions,acquired foreign brands,and implemented multi-brand development strategies to enhance the market influence of their brands and products.Shandong Ruyi Group is a typical enterprise.In order to establish its own high-end ready-to-wear brand in the fashion industry,it has continuously carried out overseas mergers and acquisitions in recent years.Now it has acquired high-end fashion brands from Japan,Britain,France and other countries.This study takes Shandong Ruyi Group as the case study of SMCP Group in France,and analyzes the impact of the merger on the performance of mergers and acquisitions,and provides relevant suggestions and inspirations for overseas mergers and acquisitions of other garment enterprises in China.Based on the literature review and the related research theory,this paper first describes the case background of Shandong Ruyi Group's acquisition of the French SMCP Group.Secondly,it analyzes the motivation of the merger from different angles.Then,from the short-term and long-term perspectives,the performance of Shandong Ruyi Group's acquisition of the French SMCP Group was analyzed.Analysis of short-term performance,using event research method,analysis of Shandong Ruyi's change in stock long-term yield and cumulative excess return rate before and after the merger and acquisition date,according to which the conclusion of the impact of the merger on Shandong Ruyi's short-term performance.Analyze long-term performance,and use financial indicator method and non-financial indicator method to analyze the impact of the merger on the performance of Shandong Ruyi Group.In terms of financial indicators,it adopts four indicators of profitability,solvency,growth ability and operational capability.In terms of non-financial indicators,we use the indicators of future development capabilities and brand value after mergers and acquisitions to analyze the profile of post-merger enterprise integration.Finally,through the above-mentioned several levels of analysis,the corresponding research conclusions are drawn,and corresponding domestic and apparel enterprises go out and implement the overseas M&A strategy to propose corresponding policy recommendations.The research results show that Shandong Ruyi Group performed well after the merger and was a relatively successful cross-border M&A activity.From the short-term performance point of view,after Shandong Ruyi Group announced the acquisition of the French SMCP Group,Shandong Ruyi's share price has increased compared with that before the announcement.In most days of the event period,the cumulative excess return rate is greater than zero,and the announcement reaches the maximum value in the future.Market investors have a positive attitude towards the M&A case.It shows that Shandong Ruyi Group's acquisition of the French SMCP Group has brought positive wealth effects to shareholders.From the perspective of financial indicators,Shandong Ruyi Group has stronger solvency after the merger,less debt repayment risk,stable operation,net profit increase year by year,and profitability gradually increased.M&A has not been able to operate its Ruyi Group.It has too much impact.From the perspective of non-financial indicators,the integration of the two parties is good after the merger,and the brand value of Shandong Ruyi is improved and the market influence is improved.