Research On The Value Creation Of Ruyi Group's Continuous Mergers And Acquisitions From The Perspective Of The Entire Industrial Chai

This textile and apparel industry is a traditional pillar industry supporting China’s national economy,and China is the largest exporter of textile and apparel products.However,since the outbreak of the epidemic,the domestic and foreign market environment has become increasingly stringent,which has a great impact on China’s textile and apparel industry,requiring China’s textile and apparel industry to strengthen the basic industrial layout and actively promote industrial transformation and upgrading.and vigorously promote industrial transformation and upgrading.With the increasing competition among enterprises,M&A has become an effective means for enterprises to quickly deploy the development of the entire industrial chain.Various forms of M&A in the textile and apparel industry are becoming more and more frequent,the scale and number of M&A in the textile and apparel industry are gradually increasing,and more enterprises are hoping to transform from single M&A to successive M&A.With the development of enterprises,textile and apparel enterprises have set the strategic goal of developing the entire industry chain,and have expanded their enterprises from the manufacturing link at the bottom of the smile curve to the design and development,and the marketing and retail links at both ends.Through successive M&As,the supply of raw materials,the level of design and development,and brand awareness,thus improving the competitiveness of the company in the industry and creating corporate value.Whether successive M&As can achieve the purpose of the enterprise and increase enterprise value needs further examination.Therefore,analyzing whether an enterprise can bring value creation to the enterprise by combining the M&A activities it has carried out over the years can provide practical experience for other enterprises.This paper introduces the development profile of Yeoui Group through literature review,case study,and comparative analysis,and summarizes the M&A cases of Yeoui Group from 2010-2021 based on synergy theory,resource-based theory,and core competency theory.The historical M&As of Yeo Yew Group are divided into four segments according to the segments of Yeo Yew Group’s overall industry chain.By analyzing and evaluating the value creation of each link in the entire industry chain,we apply synergy,EVA,and MVA to evaluate the improvement of overall corporate value creation.The results show that the group has achieved its value creation goals in the short term,but is destroying corporate value in the long term.Further analysis revealed that Ruyi Group has four problems: inadequate layout of the entire industrial chain,fast frequency of M&A,mismatch between M&A plans and development strategies,and lack of integration efforts.Based on the problems of successive M&A,Ruyi Group proposes to improve the industrial chain system,control the frequency of M&A to a moderate level,unify M&A decision-making and overall strategy,and emphasize the integration of companies after M&A,hoping that it will serve as a reference for the development of the entire industrial chain for other companies in the industry.