M&A Performance Analysis Of Internet Companies

At present,with the continuous development of information technology and the continuous growth of economic level,the Internet has penetrated into all aspects of our lives.Since 2013,the Internet industry has set off a wave of M&A,and the scale of online retail companies has been growing,but with the aggravation of competition and the decline of the growth of Internet users,according to the National Bureau of statistics,China’s network from 2010 to 2016 Retail trading volume dropped from 96.9% to 26.2%.For online retail enterprises,they need to develop new profit growth points to avoid touching the ceiling of development.And fresh grocery products are just the short selling board of online retail companies.In order to make up for this,online retail enterprises have set off an upsurge of M&A of offline large supermarket chains.The traditional retail industry also tries to expand sales channels through M&A activities,upgrading to Omni channel sales,and the integration of online and offline is constantly advancing.However,due to this phenomenon just emerging,there is little research on Internet enterprises and traitional retail enterprises.This paper selects the largest M& A activity in recent years-Amazon’s acquisition of whole foods supermarket,hoping to use typical cases for all-round analysis,providing example guidance for future enterprises to carry out the merger and acquisition activities,which is of farreaching significance.This paper mainly uses case study method to study the short-term performance of M&A events by using event study method to analyze the stock price on the announcement day of M&A of both sides of the enterprise.It judges the long-term performance after M&A by comparing and analyzing the differences of various financial indicators of both sides before and after M&A,and judges the impact of M&A events on both sides of M&A from both short-term and long-term aspects.Then use income method to evaluate the value of whole foods supermarket,and judge whether the price of M&A is in a reasonable range.This paper is divided into six chapters.The writing ideas and main contents of each chapter are as follows:The first chapter introduces the research background and significance of this paper.The second chapter introduces the theory of M&A and summarizes the relevant research literature at home and abroad.The fourth chapter introduces the basic situation and process of M&A in the case,and expounds the reason why Amazon chooses cash M&A.The fifth chapter analyzes the financial statements of the whole food market.The sixth chapter summarizes the research results of this paper,and expounds the shortcomings of this paper.