A Case Study On Continious Mergers And Acquisitions Of Nanjing Xinbai

In recent years,under the background of China’s economic slowdown and the rise of Internet e-commerce,the traditional retail industry is facing great challenges,and the traditional business model of retail department store industry has been difficult to adapt to the market.In this context,merger and acquisition events occur frequently in the retail industry.Enterprises hope to complete the transformation and further development more quickly through merger and acquisition.As one of Nanjing’s established retail companies,NanJingXinbai has been exploring a new development model in the face of the industry downturn and performance decline.In 2014,the company began to lay out the business model of "modern business + medical care and pension services".Through M & A,Nanjing Xinbai has been transformed into a diversified enterprise with modern department stores and medical care for the aged.Through a series of M& A activities,Nanjing Xinbai has rapidly realized diversified development and dispersed business risks.But does the continuous M & a really enhance the company’s value? In this context,based on a series of M& A activities carried out by Nanjing Xinbai in 2014-2018,this paper studies the motivation of Nanjing Xinbai’s choice of continuous M & A,and the impact of continuous M & A on financial performance and non-financial performance,so as to facilitate the M & A activities of Nanjing Xinbai and other enterprises adopting continuous M & a development mode To provide corresponding enlightenment and suggestions.The conclusions of this paper are as follows:(1)The motivation of Nanjing Xinbai’s continuous M &A is mainly based on its own development strategy.Through analysis,it is found that the continuous M & A activities play a positive role in the overall layout of Nanjing Xinbai’s medical pension industry,and the investment in overseas retail industry is unsuccessful.However,the layout of medical pension industry has achieved initial results,with a good development prospect.(2)Using the event study method to analyze the short-term market performance,it is found that the merger of Hof in the UK has brought the company excess earnings,but Nanjing Xinbai’s continuous merger and acquisition strategy in the field of medical care and pension is not optimistic by the market in the later stage,which may be caused by the risk that investors think the company is facing resource dispersion and new industry.(3)Using financial indicators and non-financial indicators to analyze the financial performance,we find that the continuous M & A activities of Nanjing Xinbai improve the performance to a certain extent,but it can not be ignored that the later stage of Hof bankruptcy seriously affects the quality of profitability.This paper holds that enterprises should make a reasonable strategy of continuous M & A,carefully select the target enterprises,reasonably value the subject of M & A,innovate the payment method of M & A,and pay attention to the integration and development after M & A.