A Case Study On The Financial Effect Of The Sanpower Group’s Merger And Acquisition

Nowadays with the rapid development of economic,the competition between the companies more and more intense.In the company’s development process,whether its positioning or strategic planning need to keep up with the trend of the times,otherwise the company is difficult to operate or company may be replaced by emerging enterprises.In this situation,more and more enterprises choose mergers and acquisitions to upgrade the strategy.In recent years,the development of traditional retail enterprises has become increasingly difficult.There are two main reasons,on the one hand,the overall development of the industry is blocked because of the influence of macroeconomic,on the other hand is intensified competition among industries.To promote the business,more and more traditional retail enterprises choose mergers and acquisitions to upgrade.Therefore,this paper selected the merger of Sanpower Group as the research object to do the analysis of performance after the company mergers and acquisitions.Therefore,this article aims to study the performance of Sanpower group mergers and tell whether it’s acquisitions to expand the development of enterprises have played a good role from perspective of the finance analysis.Firstly,this paper studies the relevant literature and theory of M & A and M &A performance.Secondly,on the basis of analyzing the present situation of the development of China’s retail industry,we carry out the performance analysis of Sanpower Group.From the aspects of mergers and acquisitions in terms of performance,this article carries out analysis of financial indicators,from profitability,solvency,operational capabilities and development capacity of financial performances before and after the acquisitions of Sanpower Group from the the year of 2012 to 2016.Through factor analysis to the five years preceding the mergers and acquisitions,mergers and acquisitions that year,and three years after the merger of the performance comprehensive scoring model is set up,as measured by composite scores before and after m&a performance.Finally draw the conclusion: mergers and acquisitions of Sanpower Group to have not too much effect the performance of listed company.According to the analysis results,we puts forward some suggestions on the development of Sanpower Group and the traditional retail enterprises and this study has some practical significance,hoping to be able to help the development of traditional retail industry.