Research On The Performance Of Ligeance Aerospace Technology’s Premium M&A Of Gardner

As an important means for Chinese companies to achieve growth,transformation and upgrading in the short term,mergers and acquisitions can provide companies with relatively rapid access to technology platforms,key resources and markets in the short term.With the rapid rise of the M&A market,premium M&A has become the norm for the development of Chinese companies.However,it is still difficult to determine whether a higher premium can create ideal value for the enterprise.Therefore,it is of great practical significance to study the performance of enterprises after high premium mergers and acquisitions.This article takes the case of Ligeance Aerospace Technology Company Limited’s acquisition of Gardner as the research object,summarizes the research content related to premium M&A and M&A performance in domestic and foreign research literature.Respectively,it briefly analyzes the process and motivations of Ligeance Aerospace Technology Company premium merger and acquisition of Gardner,focusing on the market performance,financial performance and non-financial performance of Ligeance Aerospace Technology Company before and after the merger.First,the event study methods is used to calculate the excess return rate of the stock price within 40 days before and after the acquisition of Ligeance Aerospace Technology Company,and the market performance of the merger event is reflected by market fluctuations.The analysis results show that the capital market has not responded enthusiastically to the merger;Secondly,based on the financial statement data disclosed by Refinery Aviation from 2015 to 2018,its financial performance is analyzed and evaluated through principal component analysis and comparison methods.The evaluation results show that mergers and acquisitions have a greater negative impact on the financial status of the company,but in the long run,mergers and acquisitions have realized the transformation and upgrading of enterprises,and the development prospects of the industry after the upgrade are better than before.Finally,starting from the motivations for the acquisition of Ligeance Aerospace Technology,we analyze the non-financial performance of its mergers and acquisitions.The results found that although the M&A basically realized the transformation and upgrading of the main business,opened the international market and successfully entered the aerospace field,and enhanced the core competitiveness of the enterprise.However,the synergies achieved after M&A were not as expected,and the merger and acquisition resulted in a huge loss of goodwill and higher premiums.Based on the analysis of the M&A performance evaluation results,this article analyzes the factors affecting the M&A performance of Ligeance Aerospace Technology Company,and discovers the politics,culture,and distance of the country where the company is located,the industry environment in which both parties are located,the company’s own factors and so on.The transaction operation of the transaction may have an impact on the performance of corporate mergers and acquisitions.Therefore,enterprises must base themselves on their own development needs before mergers and acquisitions,capture the right time,choose the right merger targets,carefully plan and deploy,and strengthen the prediction and prevention of risks.When selecting the target company,it is necessary to conduct due diligence in advance to avoid the negative effects of excessively high merger and acquisition premiums on corporate performance.In the evaluation,it is necessary to avoid the business risk caused by excessive premiums,and optimize the transaction structure to reduce corporate finances.Risks,pay attention to the integration effect after mergers and acquisitions,and strive to cultivate their own core competitiveness,so that premium mergers and acquisitions can truly create value for enterprises.