Research On The Strategy Of "Snake Swallow Elephant" M&A Of Listed Companies And Its Economic Consequences

With the development of capital market,more and more enterprises rely on M&A to achieve the purpose of strategic transformation and optimization of resource allocation,so as to develop and strengthen their own strength,and the number of M&A events also shows a trend of increasing year by year.Among them,a special type of M&A-"snake swallowing elephant" M&A is gradually known by everyone.However,the difficulty of "snake swallow elephant" M&A is different from other M&A.Because weak enterprises want to realize the annexation of strong enterprises,the difficulty of its realization can be imagined.A little carelessness in the process of M&A will lead to the failure of M&A,which will not only not bring positive benefits to the enterprise performance,but also drag down the development of the enterprise,and even lead to bankruptcy.In the capital market,"snake swallow elephant"type merger and acquisition failure cases are everywhere.Therefore,it is self-evident that it is necessary to study the strategy selection of "snake swallow elephant" M&A.The purpose of this paper is to study the strategic choice of "snake swallow elephant" M&A and the consequences of them,through the combination of literature review and case study,in order to provide reference for future "snake swallow elephant" M&A and improve the success rate of M&A.Through the research of this paper,it is found that the choice of M&a target and timing,financing mode,transaction structure,intermediary and later integration will have different effects on the performance of M&A.Among them,the target and timing of M&A,as the starting point of M&A activities,determine the direction of M&A to a large extent;the choice of financing mode will affect the financial situation and overall risk level of enterprises after M&A;the design of transaction structure will affect the cost of M&A and the risk of transaction;the choice of intermediary institutions will affect the degree of information asymmetry;and the later integration will affect The exertion of synergistic effect.Finally,the choice of five M&A strategies will affect M&a performance.This paper analyzes the strategic choice of APAC in this M&A activity with the help of the case of APAC's M&A activity to Lexmark international,analyzes the M&a performance of APAC after this event with the help of event research method and accounting index method,and tests the consequences of the five M&A strategy choices.Finally,through case study,we can get five inspirations for the selection of "snake swallow elephant" M&a strategy;determine the strategic needs and consider the target risks;skillfully set up the transaction structure to control the transaction risks;leverage the bank and fund to multi-channel financing;play the role of various intermediaries;and use multiple strategies to protect"snake swallow elephant".In order to provide reference for the strategic choice of "snake swallow elephant" M&A in the future.