Research On The Influence Of M&A Fund On Mergers Performance

With the increasingly fierce market competition,more and more companies want to improve their competitiveness through mergers and acquisitions,however,many companies lack the capital to make big acquisitions,under this circumstance,the "PE+ listed company" model of mergers and acquisitions fund has emerged.This model of M&A fund is established by the listed company and the private equity partner,the listed company only needs to invest a small amount of capital,the rest of the capital will be raised by the PE.Through this mode of operation,listed companies can not only reduce the occupation of corporate capital by M&A activities,but also make use of PE’s experience in capital operation and M&A to help enterprises to carry out mergers and acquisitions.Therefore,"PE+ listed company" M&A fund has been widely used by listed companies since 2011,however,whether the M&A fund will bring higher M&A performance to enterprises as expected remains to be discussed.Therefore,this paper analyzes the M&A performance of "PE+ listed company" model of M&A fund after the listed company introduce the M&A fund in acquisition plan.This paper adopts the method of comparative analysis of double cases,and here are three main criteria for selection.First is that both companies belong to the same industry.Second,the two companies need to be of the same M&A type,for example,both belong to horizontal or vertical M&A.Third,the performance growth rate of the two companies before the merger should not be too different to prevent the growth difference having an impact on the performance after the merger.In this paper,the data of two selected enterprises in the same period were compared horizontally,and the historical data were compared vertically,and from the perspective of short-term and long-term research,short-term performance including Tobin Q,long-term performance includes various accounting indicators and EVA core indicators.Through the analysis from the above perspectives,the influence of M&A fund on corporate M&A performance is studied.It is found that M&A funds have certain positive effects on the improvement of M&A performance of listed companies.In terms of market performance,during and after the merger and acquisition,the listed companies that have introduced the merger and acquisition fund perform better.In terms of profitability,the listed companies that introduced the M&A fund achieved better profitability during and after the M&A.In terms of operational capacity,listed companies that have introduced M&A funds have achieved higher growth during the M&A period and still have better performance after the merger.In terms of solvency,the addition of M&A funds has not significantly improved the debt situation of listed companies In terms of growth ability,the performance of listed companies that have introduced m & a funds during the M&A period is obviously better than that of listed companies that have not introduced M&A funds.In terms of EVA,in addition to EVA growth rate,listed companies that have introduced M&A funds have better performance in EVA and EVA rate of return.According to the study,in order to fulfill their respective duties,it is necessary to strengthen the information disclosure requirements of listed companies,clarify the rights and responsibilities of listed companies and PE,and give full play to the advantages of all parties involved in M&A funds in order to truly enable M&A funds to bring benefits to enterprises.