Matching Evaluation Of Jiefeng’s Acquisition Of German Grammer And Its Performance Study

M&A is a giant corporate investment,a comprehensive package deal.There is no rehearsal,much less rehearsal opportunities,so M&A is a risky investment for the enterprise.There are usually two common means of controlling risk prior to M&A,one is a non-direct acquisition,starting with a minority equity investment,joint venture,strategic alliance or agreement,and the other is to control the size of the M&A.Once an acquisition target is identified,M&A risks can only be reduced through exhaustive due diligence,reasonable valuation,difficult negotiations and meticulous integration.Companies are increasingly in need of resources and talent,and M&A is an important way to help companies quickly acquire key resources.The M&A market has become increasingly popular in recent years,but despite this,companies should not blindly engage in M&A activities without considering their own realities.The initial problem faced by the management of an acquiring company in an M&A is the selection of the target company.The match between the acquirer and the acquiree is a prerequisite and basis for achieving synergies and creating value in an M&A.However,there are still few theoretical studies on M&A matchability and its performance in China.Therefore,it is important to identify the main dimensions of M&A matching,evaluate the matching between M&A parties,and then analyze the impact of M&A matching on M&A performance.In recent years,the auto parts industry has been developing rapidly and the number of M&A activities has been increasing,so this paper selects a typical case of Jifeng’s M&A of Grammer to carry out the study.This paper adopts a systematic approach to analyze M&A matching from two perspectives:operational matching and resource matching,in order to enrich the relevant theoretical research and provide a basis for selecting a suitable target party and achieving M&A success in M&A practice.Based on the system theory and resource theory,this paper establishes the M&A matching evaluation method and M&A performance evaluation method from M&A motivation and then to M&A matching and M&A performance.The matching evaluation is carried out in two aspects,which are operational matching and resource matching.Firstly,the operational matching will be based on the distance function tool to analyze the matching of M&A parties in four dimensions:industry,region,scale and profitability;while the resource matching will be analyzed with the tool of M&A matching matrix in three aspects:industry chain,product and technology,customers and market.The dynamic matching in M&A runs through the whole M&A process.In M&A activities,the matching of various parts of the M&A parties is the basis for achieving synergy effects,and whether M&A can promote synergy effects and realize value creation is the key aspect to be considered in M&A performance.Therefore,after the matching analysis,this paper evaluates the performance of this M&A in terms of both long-term performance and short-term performance.The financial indicator study method is used in the long-term performance evaluation,and the event study method is used in the short-term performance evaluation.After analysis,this paper concludes that a good target party should first meet the needs of the M&A party and at the same time "match" the M&A party to the greatest extent possible.The match between the two parties is both a prerequisite for the M&A to generate value and a key to a smooth post-merger integration.The paper finally comes up with three suggestions for future M&A companies:first,M&A should consider many factors instead of blindly acquiring;second,the match between M&A parties is the basis for achieving synergy;third,the organic integration of resources after M&A is the guarantee for enhancing value.