Study On The Performance Of Huayuan Holdings’ Acquisition Of Ruijie Technology

Merger and acquisition is an important way for enterprises to achieve scale expansion,integrate external resources and improve industry status.In recent years,with the slowdown of global economic growth,packaging enterprises are facing the severe situation of increasingly saturated market and intensified industry competition.Therefore,it is urgent to seek diversified development through mergers and acquisitions,implement business strategy transformation,and transform from production-oriented to green environmental protection.Taking The acquisition of Ruijie Technology by Huayuan Holdings as an example,this paper discusses the motivations of the acquisition from the development of both parties,including the continuous expansion of market scale,the expansion of the radiation range of packaging products,the realization of synergistic effect and the improvement of profitability.Secondly,using the event study method,from the perspective of market reaction,the m&a performance of Huayuan Holdings is analyzed,and it is found that m&a has a positive impact on the stock price.Then,the financial index analysis method and non-financial index are used to evaluate the m&a performance.From the financial index,the debt paying ability of Huayuan Holdings is significantly improved,the profitability is to be improved,the operation capacity is improved,and the growth capacity is rapidly improved.From the perspective of EVA,it still shows an upward trend on the whole.From the perspective of non-financial performance,after the merger,the proportion of sales of the top five customers decreased significantly,while the sales increased significantly,and the post structure and comprehensive quality of employees were significantly optimized.From the results of the merger,the merger has greatly enhanced the value of Huayuan Holdings,and laid a solid foundation for the future development of the enterprise.Finally,the paper summarizes and analyzes the m&a performance of Huayuan Holding’s acquisition of Ruijie Technology,and finds that the merger is not only a good market response,but also a successful enterprise performance improvement.However,huayuan Holdings in the payment of consideration,merger and acquisition price,performance commitment and corporate integration and synergistic development of the shortcomings,the paper puts forward relevant suggestions.