Research On The Motivation And Performance Of Wingtech Technology's "snake Swallowing Elephant" Cross-border Mergers And Acquisition

To carry out globalization strategies,Cross-border mergers and acquisitions have always been a necessary way for Chinese enterprises.Although the total number of cross-border mergers and acquisitions of Chinese enterprises has been reduced due to the adjustment of domestic policies and the impact of the new crown epidemic in the past two years,with the in-depth implementation of China’s "going out" development strategy,cross-border mergers and acquisitions will still become one of the main ways of Chinese enterprises going abroad and strategic transformation.With the development of M&A,there have been more mergers and acquisitions with weak and strong "Snake swallowing elephants"."Snake swallowing elephants" M&A brings both opportunities and great challenges.There are many failed cases.M&A companies need to clarify their M&A motivations so that M&A can truly serve the business development of the company and performance research is necessary.This thesis selects the case of Wingtech’s "Snake swallowing elephants" cross-border merger and acquisition of Nexperia as the research object.Moreover,in recent years,my country has attached great importance to the development of the semiconductor industry,and the research on the motivation and performance of Wingtech’s "Snake swallowing elephants" cross-border mergers and acquisitions has reference significance for other companies to implement "Snake swallowing elephants" cross-border mergers and acquisitions.First of all,after systematically reading and sorting out the research on "Snake swallowing elephants" M&A by domestic and foreign scholars,this thesis understands the current research status of "Snake swallowing elephants" cross-border mergers and acquisitions.Selected the case of Wingtech’s "Snake swallowing elephants" cross-border M&A,and then based on M&A motivation and information asymmetry and signal transmission theory as the theoretical basis,introduced the M&A process,and comprehensively analyzed the M&A motivation and post-merger performance of Wingtech Technology.In the post-performance analysis,the event research method and the combination of financial and non-financial indicators are mainly used to analyze the short-term market performance and mid-and long-term performance of the enterprise,and the post-merger risk is also analyzed.From the perspective of short-term market effect,Wingtech’s cross-border M&A activities are good news for the capital market,enabling the company to obtain positive cumulative excess returns and increasing the overall value of the company;from the perspective of financial performance,the profitability of the company However,due to the large amount of debt financing in corporate M&A,the debt repayment pressure is high,and the solvency of the company has declined;from the Z-score model,the post-merger companies are in good operating condition and financial risks are reduced.Then,it analyzes Wingtech’s M&A experience and some existing problems,and finds that the successful experience includes Wingtech’s M&A plan and integration plan design is reasonable,comprehensively considering the company’s own situation,from the selection of appropriate M&A targets,transaction structure design,Financing arrangements and post-merger integration are carried out in four aspects.However,there are also some problems,including flaws in the evaluation of the target company’s valuation and the implementation of "Snake swallowing elephants" mergers and acquisitions even when its own funds are seriously insufficient,resulting in great debt repayment pressure.Finally,it draws the suggestions and inspirations that Wingtech’s "Snake swallowing elephants" cross-border M&A provides for other companies.