A Study On The Snake-Swallow-Elephant M&A Of Listed Companies:Strategy Arrangement And Economic Consequences

With the gradual improvement of the capital market,merger and reorganization has become an important way for enterprises to integrate resources,rapidly expand scale and enhance core competitiveness.The number of merger and acquisition events and transaction amount also show an increasing trend year by year.The industrial development of our country is at the time of the replacement of the old order.Compared with the high requirements of independent innovation for enterprises’ research and development strength and previous investment,if listed companies can make use of their financing advantages in the capital market and choose the right target for the industrial chain integration,it will not only help enterprises seize the market opportunity,but also avoid the risks caused by independent research and development.With the increasing demand for the extension expansion of emerging industries,a special type of M&A the Snake-swallow-elephant M&A dominated by weak enterprises has gradually attracted public attention.Due to the wide scale of snake and elephant enterprises,compared with the common strong and weak,the Snake-swallow-elephant M&A often face greater risks and challenges.So how does the process work to make a successful M&A? By referring to past studies,this paper finds that there are few studies on the Snake-swallow-elephant M&A,and even fewer studies on the strategic application of such kind of M&A,which does not match the reality of the significant growth of Snake-swallow-elephant M&A events in the capital market.Therefore,this paper believes that it is necessary to focus on the special mergers and acquisitions of the Snake-swallow-elephant type to carry out related research.This paper studies the cases of Shanghai Will Semiconductor Co.,LTD.(Will Stock)’s acquisition of Beijing Haowei Technology Co.,LTD.,Beijing Sibico Microelectronics Co.,LTD.and Beijing Shixinyuan Technology Co.,LTD..This paper first introduces the development history and future prospect of Will’s industry,sorts out the basic situation of Will’s Snake-swallow-elephant M&A,and clarifies the motivation of the M&A party.Next,this paper mainly focuses on the five aspects of Will’s choice of target enterprises,choice of M&A opportunity,response to M&A risks,arrangement of payment method and integration design in the later stage of M&A,and analyzes the strategic arrangement of Will’s implementation of the Snake-swallow-elephant M&A.In addition,this paper also uses the event study method to analyze the short and long term market performance of Will’s Snake-swallow-elephant M&A event,and selects financial and non-financial indicators to conduct vertical comparative analysis of the enterprise and horizontal comparative analysis with the industry,so as to prove that this M&A event is indeed a successful case in the Snake-swallow-elephant M&A.Finally,through the case analysis to draw a conclusion,and extract some experience enlightenment for future reference,including starting from the strategic needs,select the target enterprise;Reasonably estimate the value of the target,grasp the opportunity of low price;Actively anticipate or have obstacles,fully prepare to deal with;Choose the financing payment method from the consideration of its own solvency;Comprehensively grasp the advantages and disadvantages of both sides of the merger and ensure that the integration plan is effective.