A Study Of The Performance Of Shanghai Qiangsheng Holding Acquisition Of Shanghai Foreign Service Holding

As a capital market activity,mergers and acquisitions(M&A)is a development tool that many companies consider in the course of their business,and after years of research and market feedback,there is a wealth of research on M&A,and the state has developed stable and mature laws and mechanisms for M&A.More and more companies are choosing M&A to achieve rapid growth or to complete transformation and upgrading as they grow.In addition,in the current process of reforming state-owned enterprises,M&A is a very important element and has become an important way of developing state-owned enterprises in China.As China’s economy enters a new normal,state-owned enterprises are facing greater opportunities and challenges,and it is particularly important to make effective use of M&A and restructuring to promote the transformation and upgrading of state-owned enterprises.Through M&A and restructuring of enterprises,the optimal allocation and effective integration of resources can be achieved,which not only promotes the rapid development and growth of state-owned enterprises,but also improves their competitiveness and market influence.This paper takes Johnson Holdings’ M&A of Foreign Service Holdings to achieve an A-share listing on the SSE as a case study.Firstly,the paper combs through the relevant domestic and foreign literature,from which the research views of scholars are summarised,and additionally collects the theoretical basis related to M&A to form the theoretical basis for writing this paper.This is followed by an analysis of the short-term market reaction using event analysis and the financial performance of the company using financial indicators,and a measurement of the financial risk of the company using the F-score model and the Y-score model,as well as an evaluation of the effect and impact of the merger before and after the acquisition of Foreign Service Holdings under both models.Finally,the non-financial performance of the company was assessed by considering the three non-financial indicators together,thus achieving a more objective and comprehensive performance evaluation.In addition,some current problems of Foreign Service Holdings and common phenomena in the industry are identified,and views and solutions to these problems are proposed.It is found that the market has reacted strongly to the listing of Foreign Service Holdings after the merger and acquisition,and the stock has increased significantly,which has not only created huge economic profits for the company,but also provided more investment returns for the shareholders.A number of financial indicators in the analysis of the financial indicators have improved to varying degrees,and the operating conditions are positive,showing strong growth capacity,but some of the financial indicators slow down after 2021,showing that the financial synergy effect brought by the merger is not obvious,and a certain period of asset integration is still needed for the subsequent merger.Overall,the M&A is progressing relatively well,and it has also produced positive effects and positive results.However,the company’s debt ratio is currently too high compared to its peers,which affects the overall quality of the company’s asset structure and solvency,as evidenced by the results of the model measuring financial risk.In addition,the results of the F-score and Y-score models show an improvement in asset quality,profitability and development capability compared to Johnson Holdings,but not significantly,and attention needs to be paid to the problems of high debt and low profitability.Finally in the non-financial performance analysis it is found that the M&A has helped the company’s digital transformation and outward strategic expansion,and the number of customers has increased further.Overall,the results of the M&A listing are relatively satisfactory.In addition,the case study of Foreign Service Holdings in this paper provides suggestions for the subsequent business development of the company and also serves as a reference for the development of similar companies involved in M&A.