Analysis On Motivation And Performance Of Jifeng Co.,LTD.Cross-border M&A Of Grammer

As one of the external means of enterprise growth,M & A can obtain external resources,absorb advanced technology,management mode,market resources and so on.China’s auto parts industry started late,its own technical experience is not as developed countries,products are mainly low-end basic auto parts products,lack of technical content.Therefore,using cross-border M & A to obtain advanced technology and overseas market resources of foreign auto parts manufacturers is the only way for Chinese auto parts enterprises to develop.But whether M & A can bring wealth benefits to shareholders and contribute value to enterprises is a subject worthy of in-depth study.In view of this,this article uses the event research method,the EVA index method and the Financial Index Analysis Method,Take JIFENG CO.,LTD.transnational merger and acquisition Grammer as the case,takes the merger and acquisition motivation as the breakthrough point,this paper studies and analyzes the changes of stock price and EVA after Jifeng’s stock merger,in order to find whether the merger and acquisition has improved the performance of enterprises,increased the wealth of shareholders,and increased the value of enterprises,it is hoped to provide beneficial enlightenment for the future M & A of our country.In this paper,we use the event study method to calculate the cumulative excess return in the window period in order to measure the short-term M & A performance,using EVA index method and financial index analysis method to analyze the long-term M & A performance of enterprises.At the same time,the non-financial performance is analyzed to evaluate the motivation of M & A.Firstly,from the perspective of market performance,the capital market is optimistic about the cross-border M & A of JIFENG CO.,LTD.Grammer,which brings obvious positive wealth effect to shareholders in the short term.Second,from the perspective of financial performance and economic value-added(EVA),the performance of JIFENG CO.,LTD.after M & A is not good,EVA rate of return keeps going down after EVA increases briefly.Although the M & A expanded the scale of business revenues,but pulled down the level of corporate profits,increased enterprise risk.Third,by non-financial performance analysis,after the M & A of JIFENG CO.,LTD.initially realized its M & A motivation,helped the enterprise to open up overseas markets,absorb advanced technology,and enrich product varieties.Fourth,in general,the performance of JIFENG CO.,LTD.after the M & A is not satisfactory,JIFENG CO.,LTD.should strengthen the integration of the acquired enterprises to fully exploit the synergy effect.