Research On The Strategic Motivation And Performance Of Zoomlion's Continuous Mergers And Acquisitions

M & A is an important means for enterprises for rapid expansion and industrial integration.Few operation behavior of the company can attract so much public attention and academic research as M & A.In recent years,The phenomenon of continuous M & A,which is common in the capital markets of various countries,has attracted the attention of scholars.It’s the hottest topic in the academic world.The research on continuous M & A in foreign countries has been relatively complete,which forms Systematic theoretical and empirical system.However,the relevant research in China has just started.Therefore,this paper is based on the research results of foreign scholars.Combined with the special background of the capital market during China’s economic transformation,it studies the types,causes and the change of Enterprise performance after the completion of M & A of listed companies in China.It aims to advise other Chinese companies on continuous M & A.This paper chooses the continuous M & A of Zhonglian Company as a case to study the motivation and performance of the continuous M & A.In this paper,the 15 consecutive M & A cases from 2001 to 2018 are summarized and sorted.According to the characteristics of each stage of M & A,the continuous M & A of Zhonglian Company is divided into three stages: horizontal M & A,vertical M & A,and mixed M & A.According to the enterprise development strategy of each stage,this paper analyzes the motivation of M & A in each stage,and studies the performance changes of enterprises after continuous M & A.The final conclusion is as follows: First,the factors driving continuous M & A under different M & A types are different.In the stage of horizontal M & A,the main purpose is to increase market share,obtain high quality assets and improve market competitiveness.In the stage of vertical M & A,the main purpose is to perfect the industrial chain and achieve vertical integration.In the mixed M & A stage,the main purpose is to realize diversification and expand internationalization strategy.Second,continuous M & A make Zhonglian Company achieve better performance.From the market point of view,after the continuous M & A,the market share of Zhonglian Company has been increased,the brand effect has been highlighted,and the operating income has increased.From the point of view of efficiency,continuous M & A improves asset management efficiency and the cost utilization ratio to some extent.From the financial point of view,the initial performance score of continuous M & A fluctuates greatly.With the deepening of continuous M & A,the performance score reaches the highest point in the vertical M & A stage.Subsequently,with the stability of the enterprise,it’s becoming more and more stablematurity.In summary,this paper uses the single case study method to analyze the continuous M & A cases of Zhonglian Company,studies the main factors driving the continuous M & A,and analyzes the enterprise performance after the continuous M & A.To a certain extent,it makes up for the theoretical gap of the existing literature in the continuous M & A research,and has certain reference significance for the continuous M & A of other Chinese enterprises.