Research On Cross-industry M & A Performance Of Small And Medium Listed Companies

With the continuous development of China’s capital market,the status of small and medium-listed companies in the market is becoming more and more important,and the wave of market diversification has also made small and medium listed companies face new challenges.In the context of cross-industry mergers and acquisitions,how to achieve the integration of the company’s original business with new business is a theoretical and practical issue worth thinking about.As a subdivision industry of China’s manufacturing industry,after years of development,the electromagnetic industry has basically become saturated.Four major magnetic production equipment production bases have been formed in China.Enterprises in the industry are generally faced with a downturn and limited development space.In China’s economic development model In the context of change,transformation and development are imminent.At the same time,the lithium battery industry is a new domestic industry.With the strong support of market demand and national policies,it has a broader development prospect and has induced a wave of mergers and acquisitions among related enterprises.Some traditional SME listed companies have also chosen to enter the lithium battery industry across industries in light of their own development needs.This article starts with two cases of Zhongke Electric’s mergers and acquisitions of lithium battery anode manufacturers,and analyzes the causes of mergers and acquisitions and the performance of mergers and acquisitions to evaluate the effects of mergers and acquisitions,with a view to providing policy recommendations for the transformation and development of case companies and related types of enterprises.The research in this article found that after the completion of the merger and acquisition of Zhongke Electric,on the basis of maintaining the original business,a dual main business structure of "electromagnetic + lithium negative electrode" was formed,which took an important step for enterprises to enter the high-end industry.The structural arrangement of this article is as follows: First,define the relevant concepts and pave the way for the theory and research methods,use the data provided by Choice financial terminal,state the cross-industry mergers and acquisitions of China’s small and medium-sized listed companies and the main problems;select Zhongke Electric M & A Case studies,introduce the process of mergers and acquisitions,analyze the rationality of mergers and acquisitions programs,and use the event analysis method,financial indicator method and EVA performance to evaluate the effects of mergers and acquisitions.This paper finds that: 1.From the perspective of AR and CAR,the market response of this merger and acquisition event is high,and the degree of participation is high,which can increase shareholder wealth in the short term;2.From the perspective of financial indicators,the two mergers and acquisitions to a certain extent Solved the problem of idle funds of Zhongke Electric,improved the company’s operating capacity,and bring new profit growth points for the company;3.From the perspective of EVA,this merger and acquisition has made EVA achieve a huge change from negative to positive.After the second acquisition,the explosive growth of EVA was achieved,which brought wealth to shareholders.To sum up,the goals of Zhongke Electric’s mergers and acquisitions have basically been achieved.By improving performance and reducing operating risks,the foundation for diversified operations has been laid,but the subsequent development of the company still deserves attention.To this end,Zhongke Electric should continue to promote the integration of merger and acquisition resources,continue to increase investment in new businesses,and strengthen risk management.The case study in this article shows that cross-industry mergers and acquisitions of small and medium-sized listed companies in the context of diversification are an important way to realize the transformation and development of enterprises.By merging and acquiring enterprises in emerging industries and quickly cutting into new areas,it can improve operating performance and bring new profits Points of growth,reduce business risks of the enterprise.