Research On The Motivation,Risk And Performance Evaluation Of Retail Enterprise M & A

In recent years,the upgrading and development of China’s information industry is quite rapid,and it has a great impact on the growth of the global economy.Internet industry,as the foundation of the information industry,plays a great role on supporting the information industry’s development.Compared with Internet retail industry,traditional retail industry’s operating cost is rising,its sales variety is relatively single,its sales scale is gradually shrinking,and more and more market share is occupied by Internet retail enterprises.Under such a fierce competition background,Suning,as a typical representative of the traditional retail industry,gradually transforms to Internet retail enterprises by means of Mergers and Acquisitions(M & A).However,the process of M & A is also accompanied by various risk factors.Whether it can successfully bring wealth and income to shareholders after M & A is a worthy subject to study.Therefore,this thesis reviews and integrates the historical background and relevant theories of M & A,expounds and analyzes various theories of M & A in many aspects.On the basis,it also combines relevant theories so as to explore the motivation of M & A,the performance evaluation analysis after M & A and the main risks of M & A.Through case study method,it analyzes the main motivation of Suning’s M & A,and evaluates the performance of M & A based on the accounting index method,EVA evaluation method and market performance evaluation method.Finally,through the case analysis,it is found that after determining the strategic goal of transforming to an Internet retail enterprise,in order to quickly complete the strategic deployment and diversify the sales types,with its help of the Internet retail experience and related technologies,strive to reach the effects of synergistic development.From the performance evaluation results after M & A,although M & A has brought some short-term boosting effects on Suning.But its negative effects are generally greater than its positive effects.As a result,it concludes that Suning’s M &A of multiple enterprises has certain valuation risks,financing risk s and integration risks.This thesis focuses on the comparative analysis of data before and after the M &A and give some reasonable suggestions on the basis of data analysis.Hopefully,this thesis can provide some reference and help for the development of M & A activities for the Listed Companies in the Internet retail industry.