Research On The Failure Of HNA's M&A

The history of mergers and acquisitions in China has been more than 30 years,because it can enable the company to quickly gain the advantage of certain resources.In recent years,it has been developing in full swing.The scale of mergers and acquisitions is getting bigger and bigger,and the number and scale of transactions are increasing year by year.rise.Although mergers and acquisitions have been developing at a rapid pace,not all mergers and acquisitions end with success,and there is a risk of failure.According to relevant data,in China,more than half of the cases of mergers and acquisitions failed due to various reasons,and the failure of mergers and acquisitions has occurred frequently.The failure of mergers and acquisitions will bring a big negative impact to the company.Not only will it be impossible to promote new business,but it will also drag down the original business and bring great risk to the company.Therefore,we need our attention and attention.This paper uses the literature method,case analysis method and event research method to analyze the failure of Hainan Airlines technology acquisition and the reasons for the failure.In the analysis of Ingram Micro's M&A results,the short-term market reaction and long-term market reaction were analyzed through event research method,and the financial efficiency was used to analyze the company's operating efficiency,asset management level,solvency,and development prospects.The multi-variable financial crisis early warning model Z-score value model is used to comprehensively determine the financial risk of the failed enterprise.By analyzing the failure cases of HNA's M&A merger,the following conclusions were drawn: The company decided to acquire Ingram Micro International in 2016 due to the poor return of frequent conversions in the previous year.It was used throughout the year to promote the acquisition of Ingram Micro International and finally completed at the end of December.After the merger and acquisition,Ingram Micro International did not significantly improve the company's profitability and improve the company's financial status as expected by HNA Technology.Instead,its profitability continued to decline,and the financial situation continued to deteriorate due to the huge debts incurred by the acquisition of Ingram Micro International.In order to change this situation,the company decided to acquire the Dangdang synergyeffect to improve the company's profitability in 2018,but the result of the M&A Dangdang plan was terminated,not only lost the possibility of regaining performance,but also paid for it.Excessive M&A costs have accelerated the deterioration of the company's operating conditions.HNA Technology has failed in mergers and acquisitions due to the following reasons: In order to achieve the goal of improving profitability,it has not considered its own capital status and operating capacity insufficiently,and blindly carried out mergers and acquisitions;over-the-counter has overdue Ingram Micro International,and has not fully investigated and guided it.The problem-affected enterprises directly affected the company's operations;the company's funds were scarce.In order to successfully complete the merger,the high debts caused the financial pressures in the later operations to be too large,and the human resources were insufficient to be able to operate the Inmars in the global business scope.Good management is carried out internationally;the liquidity crisis of major shareholders has not provided financial assistance as expected,and HNA's own capabilities cannot maintain the normal operation of Ingram Micro International.According to the problems existing in HNA's M&A,other companies are provided with relevant suggestions to promote their M&A success: correcting M&A motives,conducting strategic mergers and acquisitions,fully investigating target companies,selecting M&A in a state of sufficient funds,and accumulating funds on their own.