Economic Consequences Analysis Of Wanda Group’s Acquisition Of AMC Company

In the current situation,global competition is becoming more intense.mergers and acquisitions as an effective economic behavior in the development of enterprises,is favored by most managers.The fact also shows that many companies often use mergers and acquisitions to achieve their goals of scale expansion in the process of growing into a business giant.Economic development promotes people’s living standards,which makes the service industry become a sunrise industry.However,developing the cultural industry is more important thing in the development of the service industry,which is increasingly concerned by the enterprises.In domestic,the competition of real estate industry has become increasingly intense,its future is not optimistic.In domestic real estate field,Wanda Group has a dominant position.With the support of national policy,the cultural industry has gradually become its transformation goal.The object of the case study is the second largest cinema company in the United States,which has a huge brand influence in the global market.Therefore,the analysis of this case can provide a certain reference for other enterprises to implement similar behavior.In recent years,the state strongly supports the development of cultural industry,which provides an opportunity for the M&A activities of Wanda Group.This article analyzes the case of overseas M&A of Wanda Group,and combines the relevant theories at home and abroad with the actual situation of the case to study the economic consequences of this M&A case.By reading a large number of domestic and foreign literature,the author used the method of summarizing to sort out the main points of the case,and constructed the analysis frame of this paper,then comprehensively analyzed the whole case through five chapters.The first chapter is an introduction to the study why this M&A case is selected and how the merger takes place.On the basis of sorting out the research on overseas mergers and acquisitions,this paper clarified the analysis logic and constructed the logical structure.From the existing domestic and foreign studies of overseas mergers and acquisitions,The study method of cultural industry M&A behavior which is mentioned by this article is rare,therefore,this paper attempts to break through the paradigm of previous research on the economic consequences of the implementation of mergers and acquisitions,As a result,this paper is supposed to provide some reference for domestic M&A practice.The second chapter elaborated the definition,the kinds of M&A and the theoretical basis of this case,and lay a foundation for the next analysis of M&A case.The third chapter was the introduction of Wanda Group M&A case.Firstly,it summarized the basic information of the participants in this case.Then,it analyzed why Wanda Group implemented cross-border M&A,Finally,it outlined Wanda Group M&A program design.The reason why this cross-border M&A occur,on the one hand,is that it was to achieve diversified development,and promote the smooth transformation of the industry;on the other hand is that it was to speed up the Wanda cinema market,so as to promote the Wanda cinema to obtain import license plate license.The fourth chapter analyzed the economic consequences of Wanda Group’s cross-border M&A.First,analyzed the financial performance of Wanda Group’s cross-border M&A before and after from four main capabilities of the enterprise;then analyzed the economic benefits of Wanda Group’s cross-border M&A,including transformation efficiency,operating efficiency,listing benefit and shareholder benefit;lastly,analyzed Wanda Group’s risk of cross-border M&A from four aspects.The fifth chapter summarized Wanda Group’s M&A behavior on the basis of the previous chapters,and then elucidated the possible enlightenment of Wanda Group’s cross-border M&A behavior.Through the analysis of this M&A case,this paper draws the conclusion that M&A is beneficial to improve the market share of the enterprise,enhance the market competitiveness,promote the transformation of the enterprise and produce the synergistic effect of M&A.The M&A case has given us a lot of inspiration,such as the choice of enterprises must be in line with the enterprise development strategy and do a good job in cross-border M&A,good government public relations can avoid international trade barriers and respect the country’s corporate culture can make M&A work smoothly.On the basis of detailed analysis of the whole M&A case,this paper analyzes the economic consequences of cross-border M&A,and uses the ratio analysis method and the trend analysis method to quantitatively analyze the impact of cross-border M&A on the company’s financial performance,economic effect and risk.This paper focuses on the economic consequences of the M&A activity from the financial and non-financial aspects.The analysis of the economic and potential risks of the M&A from the non-financial perspective will help us enrich the economic consequences of M&A.The main innovation of this paper lies in the domestic research on the issue of M&A is mainly involved in the industry of resource class or technical enterprises,the tertiary industry M&A research is less.Therefore,this article studies the tertiary industry M&A model,motivation and integration from the theoretical and practical point of view,through the research,we hope it can provide some inspiration for enterprises in China that carry out such activities.