A Study On The Motivation And Performance Of Successive M&A Of G Company

With the deepening of economic globalization,the number and scale of enterprise mergers and acquisitions continue to increase,and many enterprises rely on mergers and acquisitions to achieve fundamental development and growth.According to relevant data,in recent years,the total size and number of mergers and acquisitions by Chinese enterprises have steadily increased,and the number of mergers and acquisitions by individual enterprises has become increasingly frequent.Continuous mergers and acquisitions have become an important means of modern enterprise management for some companies.They believe that continuous mergers and acquisitions can not only bring scale effects and resource integration advantages,but also gain an advantage in market competition.In this context,the capital market has also begun to pay close attention to the continuous M&A behavior of listed companies,and whether the implementation of continuous M&A by companies can effectively increase shareholder wealth and improve corporate performance has become a question that needs in-depth discussion.This article will conduct an analysis and research on the motivation and performance of G Company’s continuous M&A activities from 2016 to 2021 based on previous scholars’ research,combined with the background and development status of China’s electronic chemicals industry.First of all,this article reviews the concepts,theories,and research related to continuous mergers and acquisitions,laying a theoretical foundation for future research work.After that,introduce the development status of the electronic chemicals industry and G Company,and describe their continuous mergers and acquisitions.Based on the comparison of development strategies before and after M&A,the motivation for G Company to implement continuous M&A is analyzed.The event investigation method,financial indicator method,and economic value added method are used to analyze how the behavior of continuous mergers and acquisitions affects the financial performance of the company.Finally,based on the results of this study,suggestions are made for the issues that enterprises in relevant industries in China should pay attention to when conducting continuous mergers and acquisitions.The results show that continuous M&A has made a certain contribution to the short-term performance of Company G at the initial stage,but due to multiple premium M&As,low price discounts,external market factors,and neglect of subsequent risk management,the continuous M&A behavior of Company G has not effectively improved the company’s asset structure,nor reversed the downward trend of the company’s return on net assets,unable to exert its due synergy;On this basis,the overall conclusions and recommendations are given: When conducting continuous M&A activities,companies should carefully evaluate the investment value and control risks of the target company,and formulate a sound continuous M&A strategy;Understand the importance of reasonable implementation of continuous mergers and acquisitions,and properly utilize continuous mergers and acquisitions to promote the expansion of the company’s territory;While stabilizing its own inherent business,it adheres to independent innovation and technological breakthroughs to achieve sustainable growth and profitability of the company,gain the greatest advantage in market competition,and establish itself in the evergreen land of its industry.