| As the pillar of the national economy,the manufacturing industry faces the problem of excess production,strong structural adjustment pressure and weak core technologies,resulting in slow growth,so it is urgent to transform and upgrade to solve this problem.Diversified strategic mergers and acquisitions help companies quickly enter emerging industries,so a wave of diversified strategic mergers and acquisitions has begun in the manufacturing industry.For sake of exploring whether the implementation of diversified strategic M＆A in China’s manufacturing organizations can positively impact performance,This paper chooses the Global Printing M＆A Horgos Lingkai as a case study and analyzes the motivation and performance of its implementation of diversified strategic M＆A,this has a certain theoretical and practical significance for the development of China’s manufacturing industry.Frist of all,This paper reviews the literature on diversified strategic M＆A and explains the concept and theoretical foundations of diversified strategic M＆A.Secondly,analyze the industry background of both parties,present the company profile,clarify the merger and acquisition process,and analyze the motivation and risk of diversified strategic merger and acquisition;Then study the integration process of Global Printing M＆A and analyze the integration effect,and Event study method,Dupont analysis method and EVA are used for comprehensive performance analysis.Finally,conclusions and recommendations are drawn.This paper analyzes the integration effect of diversified strategic merger and acquisitions,and the results show that: Global Printing in terms of strategy,business,management and technology integration,its growth ability,profit ability,operation ability,innovation ability were significantly increased,to effectively control the cost,improve market share,etc.This shows that the resources of Global Printing have been effectively integrated after the M＆A,and the company has realized the diversification strategy transformation.This paper analyzes the overall development,and the results shows that: First of all,Global Printing has achieved positive results in the capital market.Since the M＆A,the cumulative excess return has turned from negative to positive,suggesting that investors are bullish on this merger.Secondly,the results of the Du Pont analysis show that after M ＆A,the net interest rate on equity of Global Printing increased rapidly,and the main factors are the improvement of total asset turnover rate and the increase of new business income.According to the economic growth,the economic value growth of the company remained stable after the merger and acquisition,indicating that diversified strategic mergers and acquisitions enhance the value of shareholders.In general,Global Printing acquisition of Horgos Lingkai is a successful diversified strategic acquisition case. |
