A Study On The Motivation,Strategy And Performance Evaluation Of "Snake Swallowing Elephant" Transnational M&A

Compared with the "wave of cross-border MERGERS and acquisitions" in China from 2015 to 2017,cross-border mergers and acquisitions have become more rational since 2018,gradually returning to the in-depth mining of industrial value from focusing on the "China premium" caused by the competition for high-quality assets."Snake swallow elephant" transnational merger and acquisition also gradually become the common types of transnational m&a,although compared with ordinary transnational merger and acquisition,the process will be more complex,the risk will also be more changeable,but in order to quickly open the international market to achieve optimal allocation of resources,the purpose of strategic transformation and upgrading,there are more and more enterprises to "snake swallow elephant" having more expectations for mergers and acquisitions,This is also closely related to the industrial value of the target company.Through literature research and case study method,this thesis conducts an overall research and analysis on the motivation,strategy and performance evaluation of the "snake swallow elephant" cross-border merger and acquisition of Grammer,a typical case in the past five years,aiming to effectively promote the innovative development of "snake swallow elephant" cross-border merger and acquisition in strategic application.Thus,the successful experience and possible problems of M&A are summarized for future enterprises with the intention of "snake swallow elephant" cross-border M&A.Firstly,the internal motivation and external motivation of Jifeng share merger and acquisition are analyzed based on resource-based theory,synergistic effect theory and market power theory.Secondly,it studies the uniqueness and existing risks of financing,payment and betting methods in the overall strategy of Jifeng stock m&a from the perspective of domestic and overseas transactions.Then,value change analysis,financial index performance analysis,EVA analysis and Z value model analysis are used to evaluate the overall performance.The research results show that carrying out "snake swallow elephant" transnational M&A has the motivation of M&A and hopes to achieve a win-win situation in the future.Jifeng Shares is relatively successful in the application of M&A strategy,but the performance evaluation reflects that its value creation ability is weak in the two years after m&a and there are also large financial risks during this period.However,from the third year,the overall business situation of the company began to improve.Finally,according to the successful experience and existing problems of the merger and acquisition of Jifeng,six inspirations are proposed from the perspective of cooperation with the target enterprise in the early stage,multi-layer SPV equity structure,"controlling shareholder +PE" type MERGER and acquisition fund,directional convertible bond,Earn-out payment method and various risks.To focus on alleviating the "snake swallow elephant" type transnational merger and acquisition in each stage of the financial pressure and pay attention to guard against various risks and other problems.