Research On The Motivation And Value Effect Of Enjie's Continuous Mergers And Acquisition

With the change in our development concept and the proposal of the "double carbon" goal,the rapid rise and blowout growth of new energy vehicles ushered in a rapid development for lithium batteries.In addition,the country’s layout in the field of energy storage power stations provides a guarantee for the future market of lithium batteries.As a result,the lithium battery industry has become a new growth bright spot in China in recent years.As an essential part of lithium batteries,the strategic position of the Li-ion Battery Separator has been rapidly improved.The Li-ion Battery Separator started late in our country,especially since the wet method of the Li-ion Battery Separator was realized in 2006,the development process is relatively slow.The explosive growth of new energy vehicle led to the rapid development of the Li-ion Battery Separator.The Li-ion Battery Separator business has the characteristics of good market prospects and strong profitability.All enterprises engaged in the Li-ion Battery Separator business choose reasonable and effective ways to expand their market share and help them grow bigger and stronger.Enjie has the fastest growth rate.In 2017,after the M & A of Shanghai Enjie,which is mainly engaged in packaging and printing,Enjie officially announced its entry into the lithium battery isolation film industry,after the enterprise and the implementation of M & A to expand the scale of the company’s business,to help enterprises grow into the Li-ion Battery Separator industry leading enterprises,completed the transformation from traditional industry to a new industry.In this paper,the continuous M & A process of Enjie is divided according to strategic objectives,and the motivation for M & A is deeply analyzed.Through research,it is found that the primary motivations for Enjie to carry out the continuous mergers and acquisitions are as follows: first,the original business of the enterprise is Mired in the difficulty of revenue growth,and the enterprise accurately grasps the market changes to help the enterprise find new profit growth points.Second,the market demand for the diaphragm is strong,and the competition pattern is gradually emerging.Through mergers and acquisitions,the company rapidly expands its business scale,realizes scale effect,improves the industrial layout,and expands the application field of the diaphragm.In terms of merger and acquisition ability,after the failure of the Shenzhen Qingsong merger and acquisition,Enjie Stock strengthened experience learning,enhanced target identification ability and integration ability,and helped the enterprise to improve the production efficiency of the lithium battery diaphragm business.This paper studies the short-term market value effect,long-term market value effect,financial value effect and non-financial value effect of successive mergers and acquisitions of Enjie.The short-term market value effect adopts the event study method,and the cumulative excess return of successive mergers and acquisitions is greater than 0,which creates market value for shareholders.Tobin Q value is used to evaluate the long-term market value.During successive mergers and acquisitions,the company’s valuation gradually increases,resulting in a positive long-term market value effect.In terms of the financial value effect,this paper uses the financial index method.After the implementation of successive mergers and acquisitions,the business situation is remarkable,and the double growth of operating income and net profit is realized.In terms of non-financial value effect,the successive mergers and acquisitions of Enjie have provided more jobs and significantly increased the per capita salary of employees.The company’s market position has improved significantly,which has won the opportunity to cooperate with downstream customers and layout overseas markets.Enterprises actively participate in environmental protection work and social donations to show corporate responsibility.