Analysis Of The Causes And Effects Of MDS's Continuous M&A

In the past two decades,the process of economic integration has been accelerating,and economic development around the world is facing different degrees of strategic transformation.In the context of economic globalization,if enterprises want to seek rapid development,it is difficult for them to cope with the rapid change of market demand only by relying on their original business strategy,but they can achieve their own leaping development through exogenous strategy.As an important exogenous strategy,M&A can help enterprises expand their scale,reduce their costs,reduce market risks,and help them quickly enter the emerging industry.M&a first appeared in western developed countries,which have very mature M&a system and many successful cases.However,with the rapid development of China's economy,the M&A activities of enterprises are increasing day by day.In order to seize market opportunities,many companies have implemented a series of M&A activities by integrating social resources,expanding their business scale,reducing the operating costs.At this stage,in addition to a large number of M&A activities of various companies,it also presents new characteristics of fast frequency and large scale.Continuous M&A refers to the M&A activities with more than five times of M&A in three years.Continuous M&A can help enterprises obtain various resources quickly.After reasonable integration and utilization,it is possible to help enterprises realize value-added,so as to achieve the goal of strategic transformation.There are more and more cases of enterprise merger and acquisition,but the profit or loss that can bring to the enterprises of both sides of merger and acquisition is also different from person to person.Many scholars also have different opinions on this,and cannot form a unified view.Based on the theories of financial management,corporate finance and corporate strategy,and through the case analysis of MDS's continuous M&A in the past few years,this paper analyzes the effect of MDS's M&A from the perspective of motivation before MDS's continuous M&A,combined with the market effect of MDS after the completion of M&A and various indicators of synergy.The research methods used in this paper are mainly through the M&a theoretical research on the M&a related theoretical methods,and then combined with the actual M&A cases of MDS for analysis.The specific methods to be adopted include:literature research,comparative research and case analysis.The focus of this paper is why MDS carries out multiple consecutive M&A(i.e.motivation)and the differences between MDS after M&A and before M&A.by referring to relevant materials and literature,relevant data are sorted out and summarized.This paper analyzes MDS company's industry development,background and development,and then analyzes the company's financial and operating conditions.It finds that its financial data performance in the past few years is poor,which shows that the company's single business layout has a great negative impact on the company's operating conditions.Therefore,MDS has been seeking external integration in the past few years Many M&A activities have been launched by the association.This paper finds that MDS has continued to merge,and although it has achieved a good transformation,the original wine sales company has been transformed into a diversified business enterprise that includes financial services,real estate investment,and blockchain technology trading and development.However,from the actual performance after the completion of MDS mergers and acquisitions,these successive mergers and acquisitions did not seem to bring good value enhancement and profit performance to MDS,but a larger degree of deterioration has occurred,and the decline has not changed at all.However,the reduction of holdings by major shareholders with acquisitions often occurs,which may harm the interests of small and medium investors.Therefore,in this paper,in the analysis of the causes and effects of MDS company's continuous mergers and acquisitions,this paper concludes that the purpose of MDS company is business transformation and cash-out of major shareholders,and put forward some policy recommendations for this phenomenon.