Motivation And Performance Of Continuous M&A

The new energy vehicle industry has driven the development of the lithium industry.Ganfeng Lithium Group,as the world’s third largest and China’s largest lithium compound producer,has grown rapidly through 21 times continuous Merger and Acquisition(M&A)activities in 12 years.This paper takes the company as the research case,and provides a systematic empirical analysis of the motivation and performance of its M&A activities for the period 2010-2021.The conclusion of the research:The main reason for the company’s mergers and acquisitions from 2010 to 2016 is to obtain key resources and form synergies,and its reason between 2017 and 2021 is to enhance growth capabilities and consolidate their competitive advantages.It’s worth mentioning that,from 2010 to 2016,the performance of M&A events was relatively good,and the short-term performance of each M&A event decreased as the sequence increased.It is found that the frequency of M&A activities affects the amount of management resources and cash resources occupied by the company.Meanwhile,the experience of M&A activities also has an impact on the selection of targets and the stage of design.The order of M&A activities will affect its resource utilization efficiency.Based on the comprehensive evaluation on the M&A activities of Ganfeng Lithium Group and its market and financial performance,the results indicate that continuous M&A activities have improved the long-term performance of enterprises,and utilization of the resource plays an important role in the whole process.The innovation of the research: To analyzes the motivation and performance of continuous M&A activities,the research investigates the developing stage and mature stage respectively from holism perspective.