Study On The Financial Synergy Effect Of Aoyang Health Cross-industry Mergers And Acquisitions

With the development of global economic integration and the drive of the "one belt and one way" initiative and the transformation and upgrading of enterprises,the M & A activities of listed companies are becoming increasingly active.Statistics show that in November 2018 alone,120 listed companies issued M&A announcements,involving more than 550 billion M&A dollars,more than four times the ring-to-ring growth,of which cross-industry M&A accounted for more than 60%.In order to achieve financial synergy,carry out diversification strategy and diversify business risks,cross-industry M&A activities are in full swing.The criteria for evaluating the success or failure of cross-industry mergers and acquisitions have always been controversial,and the performance of synergy as the key motivation of cross-industry mergers and acquisitions is generally concerned.Therefore,the evaluation of synergy effect of cross-industry mergers and acquisitions and the lessons learned from it deserve our in-depth study through case analysis.This paper chooses financial synergy as an important perspective of synergy effect,and makes a thorough and detailed study on the case of healthy cross-industry M&A in Jiangsu Aoyang Health Industry Co.,Ltd.on the basis of relevant theories,hoping to provide reference value for cross-industry M&A in the future.On the basis of combing the research results and theories of cross-industry M&A and financial synergy effect,this paper chooses the typical cross-industry M&A case-healthy cross-industry M&A event in Jiangsu Aoyang Health Industry Co.,Ltd.,and makes a detailed analysis of the motivation of M&A and the operation and financial situation of both sides before M&A,so as to provide rationality for the future study of financial synergy effect.Then,from the three perspectives of financial ability,operating performance,capital cost and cost control,this paper makes a comprehensive evaluation of the financial synergy effect after healthy M&A of Jiangsu Aoyang Health Industry Co.,Ltd by means of financial index method and EVA analysis,and try to find out the cause of synergy or not in the process of analysis,summarize the experience and lessons,and draw relevant enlightenment.This paper concludes that after cross-industry M&A,the short-term financial synergies achieved by Jiangsu Aoyang Health Industry Co.,Ltd.are basically in line with expectations.Among them,in terms of financial ability,market returns and profitability,sustainable revenue and development ability have achieved more obvious synergies in the short term,while capital structure optimization and financial risk control,asset utilization efficiency and operating conditions have achieved some synergies in the short term;in terms of operating performance,synergies have been more obvious in the short term,and diversified development mode has basically formed.Some synergies have been achieved in capital cost and cost control.However,with the passage of time,the synergistic effect of M&A on enterprises gradually weakens,and the long-term maintenance of financial synergy still has some challenges.It is worth affirming that Jiangsu Aoyang Health Industry Co.,Ltd.grasped the timing of M&A,chose the target company and its own financial situation more matched,in the short term,it did produce a good financial synergy effect.However,due to the inadequate integration of financial and business resources after mergers and acquisitions,the new sunrise industry,medical and health services,has not been rationally managed,and the long-term financial synergy effect has not been paid enough attention to,leading to mergers and acquisitions in the late period did not bring lasting financial synergy to enterprises.This paper affirms the success of this M&A case and summarizes the relevant deficiencies.At last,it gives relevant enlightenment,hoping to provide reference for enterprises with similar cross-industry M&A intentions in the future.