Comparative Study On The Performance Of Qianshan Machinery Bef Ore And After Diversified M&A

In an era of rapid economic development,companies are facing increasingly fierce market competition.Mergers and Acquisitions(M&A)has gradually become an important way for companies to expand their market size and improve their competitiveness.The Wind database shows that since 2009,more and more companies have chosen the development path of outbound M&A.Diversified M&A have become a key way for companies to develop themselves,broaden their business and transform their strategies.At present,scholars at home and abroad have two main directions for the study of performance of diversified M&A:one is to explore the performance changes after diversified M&A,and the other is to explore the factors affecting the performance of diversified M&A.The above research is mainly based on empirical research,but there are few studies on cases,and the causes of problems after individual companies' diversified M&A are also relatively few.Therefore,it is necessary to research from the perspective of cases,on the one hand to explore the diversified M&A perfonnance.and on the other hand to perfect the research on the factors affecting the perfornance of diversified M&A.As a traditional pharmaceutical machinery co1pany,Qianshan Machinery Co.,Ltd.chooses diversified M&A to realize its own development in the process of strategic transformation.However,with the deepening of diversified M&A,Qianshan Machinery has fallen into a predicament of survival.The article takes "Case Introduction-Case Analysis-Case Enlightenment,as the resear-ch structure,selects the financial data of Qianshan Machinery from 2011 to 2017,and uses the traditional M&A performance evaluation method,that is,the event study method and the financial indicator method to neasure the company's performance of diversified M&A.And found that there are surges in short-term liabilities,exhaustion of cash floxv in operational activities.etc.Then combined with diversified operations and market forces and other motives of M&A,the main reason is that its continuous high-price M&A and M&A payment methods are not appropriate.Finally,based on the actual situation of the case,it puts forward some targeted suggestions,such as,consider the actual situation of the company when choosing the company to be merged.optimize financing channels,choose the payment method of mixed payment.The innovation of the article is to match the background of the market's current blindly diversified M&A for industrial layout,and chasing merger hot concept companies.At the same time,the case selection is typical,a series of diversified M&A events as research objects have certain practical significance.Through the comparative analysis of the performance of the case company Qianshan Machinery before and after the M&A,discover problems,analyze the reasons and put forward some targeted suggestions.Finally,provide some experience for other companies that want to realize their own extension development through diversified M&A.At the same time,it also plays a positive role in maintaining the order of China's M&A market.