Research On The Motivation And Financial Performance Of Cross-industry M&A

In recent years,mergers and acquisitions have become a hot topic in the capital market.The number and scale of mergers and acquisitions of listed companies in China have continued to grow,and cross-industry mergers and acquisitions have gradually entered the public eye.In 2015,the number of mergers and acquisitions announcements issued by listed companies in China reached 1,444,with a total amount of 1,576,649 million yuan,of which cross-industry mergers and acquisitions accounted for 25%.Cross-industry mergers and acquisitions have become an important choice for listed companies in China.Through cross-industry mergers and acquisitions,enterprises can improve their profitability,reduce business risks and expand their business scope.This paper focuses on the motivation of cross-industry mergers and acquisitions and the financial performance after mergers and acquisitions.Based on the research situation at home and abroad,this paper,based on the development of China’s M&A market and the progress of China’s cross-industry M&A market,further investigates the purpose of cross-industry mergers and acquisitions in the context of industrial upgrading in China.This paper selects the case study of Gangtai Holdings,which has typical characteristics,to conduct a case study,as a specific micro perspective to study cross-industry mergers and acquisitions in a more macro-transformation context.Then it analyzes the M&A motivation of Gangtai Holdings in detail and expounds the M&A method selected by Gangtai Holdings.This paper mainly evaluates the cross-industry M&A performance of Gangtai Holdings from the financial perspective,and supplements the analysis of non-financial performance.Among them,financial performance consists of short-term performance and long-term performance.This paper mainly uses the short-term stock market wealth effect to conduct short-term analysis,and supplemented by long-term performance analysis.This paper selects a series of financial indicators for analysis,and selects DEA analysis to evaluate the efficiency after merger and acquisition,and finally completes the performance commitment of Gangtai Holdings.The situation and analysis of non-financial performance explore the factors that have the greatest impact on the cross-industry mergers and acquisitions of Gangtai Holdings.Through the research,this paper finds that the performance of Gangtai Holdings after the acquisition of the Woodland Diamonds is good,which means that this is a successful merger.However,for the subsequent performance development is also unknown,Gangtai Holdings should pay attention to the improvement of operational capabilities.The conclusion of this paper is that traditional enterprises are feasible to realize industrial chain extension and new fields through cross-industry mergers and acquisitions.Cross-industry mergers and acquisitions are an important way for traditional enterprises to quickly enter new business areas to find profit growth points and adjust industrial structure.Of course,there are many factors that affect the performance of cross-industry mergers and acquisitions,so we should treat cross-industry mergers and acquisitions objectively and rationally.It also provides suggestions for cross-industry mergers and acquisitions of other traditional enterprises.It should choose the M&A companies that are suitable for the company itself,and adjust the development strategy of the company in time after the merger.The long-term focus is on the development of long-term performance indicators,and it is necessary to protect shareholders at all times.interest.