Study Of Xun Xing Shares Cross-Industry Merger And Acquisition Jiazhilian

At present,China’s traditional industries have problems such as saturated stocks or excess capacity,traditional enterprises have weak growth,and emerging industries such as the Internet and e-commerce are booming and profitable.Against this background,some traditional companies have begun to look for new point of growth profit,and have chosen to cross-industry mergers and acquisitions to enter new fields and occupy the market more quickly.However,not all the results of M＆A are satisfactory.Crossindustry mergers and acquisitions have brought enterprises into new fields quickly,but also accompanied by issues such as large industry spans,persistent uncertainties in profits,and higher risks.Therefore,whether there is a clear strategic plan before M＆A,whether to choose the appropriate target enterprise in M＆A,and whether to conduct effective business integration after M＆A,all directly determine the success of M＆A.Improper judgment and choice may cause the company to fall into short-term financial difficulties,and in the worst case,it may cause the company’s capital chain to break,and even seriously reduce its original core business.In recent years,with the increasingly strict supervision of M＆A and the cooling down of the M＆A boom,the disadvantages of cross-industry mergers and acquisitions have gradually emerged.Some companies conducting cross-industry M＆A are in trouble due to various problems such as the failure of the target performance.In order to enrich the related research of cross-industry M＆A,this article selects a typical cross-industry M＆A case between Xunxing and Jiazhilian,and analyzes the five main motivations for this M＆A,including of the coexistence of policies and opportunities in the cross-border export e-commerce industry,new profit growth points,diversified operations to reduce risks,synergy effects,and market value management.Then,this article measures the short-term market performance through the Event Research method.The event window period is around the announcement date [-15,15],and 100 trading days before the window period are used as the estimation period to calculate the expected rate of return.According to the set above,this event has a significant negative effect.This article measures the financial performance through financial analysis.It makes the conclusion that profitability,solvency,operating ability and growth ability of Xunxing shares have weakened after the merger.Through an in-depth analysis of the problems existing in the process of the M＆A,it was found that the reasons for the failure of the M＆A are as follows: the first is the highly leveraged capital operation and the lack of strategic planning before the merger;the second is the improper selection of the target,the high valuation of the target company,and the single payment method in the merger;the third is improper operation integration and financial integration after the merger.Finally,based on the results of this case study,five suggestions were made for crossindustry mergers and acquisitions in the hope that future cross-industry M＆A will be more rational and effective,including strategic planning before M＆A,selection of appropriate target company,reasonable evaluation of the value of the target,diversified payment methods,and emphasis on integration,especially financial integration.