Research On The Motivation And Performance Of Nanjing Xinbai Continuous M&A

In recent years,M&A activities in this industry have gradually increased against the backdrop of increasingly frequent M&A activities in the capital market,the State’s vigorous advocacy of the transformation and upgrading of traditional industries,and the high competitive pressure in the retail industry.At present,the impact of M&A activities on company performance has become a hot issue of concern for both the practical and academic communities.Therefore,this paper selects a long-established company in the industry,Nanjing Xinjiekou Department Store Co Ltd,as a case study to analyse the motivation and performance of Nanjing Xinbai’s successive mergers and acquisitions,and to propose countermeasures and recommendations to address the problems in Nanjing Xinbai’s M&A activities.It is hoped that the results of the study will provide insights for companies in the same industry that intend to undertake M&A.Firstly,the article compares the literature related to M&A to lay the theoretical foundation for the analysis of the case;secondly,the article takes Nanjing Xinbai as an example,and uses the event study method to analyze the market performance of successive M&A in the context of its M&A motivation and M&A strategy,and analyzes whether its successive M&A behavior can bring wealth to shareholders;again,the financial performance of successive M&As is analysed in terms of changes in solvency,profitability,operating and development capabilities,EVA,possible goodwill impairment risk and the completion of performance commitments of the acquired parties;then,the non-financial performance of successive M&As is analysed in terms of synergy realisation;finally,the experiences and lessons learned from Nanjing Xinbai’s M&As are summarised and recommendations are made.The results of the study show that Nanjing Xinbai’s successive M&As have not brought about the desired market performance,but the M&As have opened up new business areas,improved solvency and profitability,fulfilled all the performance commitments of the acquired companies,generated good synergy effects,enhanced corporate value and generally positive future development trends,but the overall operational efficiency of the company has decreased and the risk of goodwill impairment However,the company’s overall operating efficiency has declined and the risk of goodwill impairment should not be overlooked.Therefore,it is necessary to strengthen the integration work and consolidate the existing achievements to ensure the achievement of future development goals.It is hoped that the results of the study will provide insights for companies in the same industry that intend to undertake mergers and acquisitions,and will be beneficial to improving their M&A performance.