Motivation And Performance Analysis Of Aier Eye Hospital Group Co.,Ltd.’s Continuous M&A

With the advent of the sixth wave of M&A in the world,the number and amount of M&A at home and abroad continue to grow,and more and more companies regard M&A as an important way to expand rapidly.Relevant data shows that in recent years,the overall M&A transaction amount and the number of M&A transactions of Chinese enterprises have continued to increase,and the continuous M&A activities of a single company have become more and more common.For example,Aier Eye has 61 M&A from 2009 to 2021.With the advent of an aging society and the continuous enhancement of the health care concept of Chinese residents,the demand for health management of medical services continues to increase,and M&A in the pharmaceutical industry are also increasingly frequent.In this context,the M&A activities of listed companies have increasingly become a phenomenon worthy of attention in the capital market,and whether M&A can improve corporate performance and increase shareholder wealth has thus become a problem that requires in-depth analysis.This thesis firstly summarizes the domestic and foreign research literature related to the concept,motivation and performance of continuous M&A,and finds that due to differences in the market or industry of M&A,scholars at home and abroad have different conclusions on the performance of continuous M&A.Therefore,this thesis adopts the case analysis method to further analyze the continuous M&A activities of Aier,a leading enterprise in the medical service industry.Based on the relevant theories of continuous M&A,the motivation and process of its continuous M&A are first introduced,and then the market reaction and financial performance of continuous M&A to Aier is analyzed through event research method,analysis of financial indicators,analysis of EVA and analysis of non-financial indicators,in which some factors of the financial analysis method were compared with the industry as a whole and comparable companies in the industry.Finally,the conclusions and enlightenments of this thesis are drawn,and the directions for further improvement of Aier and other related enterprises in the future are clarified.After analysis,this thesis finds that Aier’s continuous M&A include five motivations:enjoying policy support,accelerating the strategic layout of hierarchical chains,increasing market share,absorbing overseas resources and pursuing coordinated development.In terms of performance,the long-term and short-term performance achieved by successive M&A has generally performed well.This is mainly reflected in: in the event study method,Aier’s continuous M&A have been well received by the market;in the financial performance,the company’s profitability and growth ability have been significantly improved,and the operating ability has been improved to some extent,but the solvency is not good.decreased;EVA analysis shows that sequential M&A activity creates value.Based on the above analysis,this thesis draws the following enlightenment: Continuous M&A should be based on the enterprise development strategy and be guided by strengthening core competitiveness.In the choice of financing methods,the advantages of M&A funds can be brought into play.At the same time,the integration management after M&A should be strengthened to exert synergy.