Research On The Performance Of Successive Mergers And Acquisitions Of Chemical Companies From The Perspective Of Industrial Chain

How to improve the construction of industrial chain supply chain system is a major issue facing Chinese enterprise.From the existing practical experience at home and abroad,through external mergers and acquisitions,strategic alliances and other ways to help enterprises to carry out the integration of the industrial chain system,as well as to obtain competitive advantages.With the increase in the number of mergers and acquisitions transactions in a short period of time,many enterprises have shown a trend of continuous mergers and acquisitions.However,initiating frequent and excessive mergers and acquisitions transactions may also bring financial pressure and subsequent integration problems for companies that are not adequately prepared,which in turn is detrimental to company development.Therefore,an in-depth discussion of the motives of sequential mergers and acquisitions based on industrial chain purposes,analysis of pre-and post-merger performance,and targeted recommendations by means of a case study can help provide useful references for companies to initiate mergers and acquisitions transactions and improve mergers and acquisitions efficiency.This thesis compares the research on sequential mergers and acquisitions through the dimensions of connotation,motivation and performance,combines the theoretical bases of synergy theory,market power theory,industrial organization theory,elaborates on the background of mergers and acquisitions in chemical industry,and selects LB Group,a leading company in China’s titanium dioxide industry,as the research object,introduces the internal and external environment of its sequential mergers and acquisitions,reviews LB Finally,the impact of mergers and acquisitions on the short-term financial performance,long-term financial performance and non-financial performance of the company is analyzed by calculating the excess return and cumulative excess return through data analysis.Specifically,this thesis firstly introduces the relevant chemical industry background,the development profile of LB Group,and the mergers and acquisitions events in recent years.Secondly,this paper analyzes the motivation of successive mergers and acquisitions in terms of internal demand and external policies,and concludes that the successive mergers and acquisitions of LB Group are based on three reasons: compliance with policy guidance,achieving operational synergy,and optimizing the whole industrial chain.Again,this thesis uses the event study method to measure the market reaction before and after each mergers and acquisitions announcement,and finds that in general,it has caused a more positive market reaction;using the financial index analysis method to examine the solvency,operating capacity,profitability and growth capacity of LB Group before and after mergers and acquisitions from 2013 to 2021,and finds that after successive mergers and acquisitions are affected by the cash flow pressure,However,after acquiring the upstream mineral resources and optimizing the product structure through mergers and acquisitions,the profitability and growth ability of the company performed well and occupied a higher market share.combined with the non-financial performance evaluation,the paper concludes that(1)continuous mergers and acquisitions transactions based on industrial chains are driven by a combination of external policy guidance and internal development needs(2)successive mergers and acquisitions based on industrial chains have caused different market responses;(3)successive mergers and acquisitions based on industrial chains have affected the solvency of the company,but have contributed to the improvement of the company’s profitability and growth;(4)from the perspective of non-financial performance,successive mergers and acquisitions have enabled the company to acquire strong research and experimental development and innovation capabilities.In response to the findings of this paper,corresponding suggestions are made:(1)enterprises in this industry should respond positively to the policy guidelines and choose the mergers and acquisitions stage appropriately;(2)arrange mergers and acquisitions transactions reasonably and deal with mergers and acquisitions risks appropriately;(3)pay serious attention to mergers and acquisitions integration and bring into play synergy effects significantly;(4)it is crucial not to overlook the regular review of one’s own strategy,assets,and business structure.The relevant conclusions and recommendations from this study can be helpful as references for enterprises in similar industries and situations.