Research On The Impact Of Introducing Strategic Investors In The Multiple Acquisitions

Since the 18th National Congress of the Communist Party of China,with the promotion of the reform policy of state-owned enterprises’ mixed ownership,the introduction of strategic investors into China’s state-owned enterprises has ushered in a wave of upsurge.However,according to statistics,although there are many state-owned enterprises that introduce strategic investors,they are concentrated in subsidiaries or unlisted companies of listed companies,which shows that the progress of the reform of state-owned enterprises in China is still not good.On the other hand,with the enlargement and strength of Chinese enterprises,more and more enterprises have rapidly improved their competitiveness through multiple acquisitions.How to benefit from multiple acquisitions is also a topic of concern to the academic and practical circles.The previous literature studies the effect of strategic investors on the overall performance of enterprises,but there is no literature to establish the relationship between strategic investors and multiple acquisitions.Therefore,in view of the gap in this research,this paper selects the state-owned Jinjiang Hotel as a case company for research.On the basis of collating the past literature,this article conducts an in-depth analysis of the motivation,role and economic consequences of the introduction of strategic investors in multiple acquisitions.The results show that in the process of multiple acquisitions,enterprises need to introduce strategic investors to help them with multiple acquisitions activities because of the lack of resources in M&a decision-making,transaction,finance and integration.Hony Capital,a strategic investor,has made full use of its strategic resources in the multiple acquisitions activities of Jinjiang Hotel,and optimized the continuous merger and acquisition activities of Jinjiang shares.Specifically,strategic investors continue to optimize multiple acquisitions’ decisions,continuously optimize transaction processes,provide financial support and participate in the integration activities.With the participation of strategic investors,the continuous merger and acquisition of Jinjiang Hotel has the characteristics of stable reorganization and then pioneering integration.In the stable restructuring stage,Jinjiang pays attention to multiple acquisitions to accumulate cross regional industrial resources,and pay less attention to integration of multiple acquisitions,during which strategic investors mainly provide strategic resources for transaction;after multiple acquisitions,Jinjiang enters into the stage of pioneering integration,strategic investors mainly provide horizontal and vertical industrial strategic resources,and help enterprises to excavate with platform as the core Continuous merger value.With the help of strategic investors,Jinjiang Hotel have good performance in multiple acquisitions,which has a demonstration role.The research results of this paper develop the theoretical research on multiple acquisitions and strategic investors,and it is of great significance to introduce strategic investor reform into state-owned enterprises.