Research And Case Study On Mergers And Acquisition (M&A) Of List Apparel Corporation In China

With more than 50 years of development, the apparel industry of China has established a fairly integrated industrial system and China has become the largest country of clothing in the world, and also has made huge contribution to the development of the national economy. However, there are still many problems in our apparel enterprises during their development, such as few hi-tech in products, out of date designing theory, brand value not high, not good at creating, etc. All these problems will not do good to China apparel enterprises' continuous developing. Fortunately, in recent years many apparel enterprises especially those huge corporations begin to realize these disadvantages and actively increase production and marketing ability. Mergers and acquisition is one important strategy.Successful M&A will help to realize good resource share in apparel enterprises and also help to enlarge enterprises' production scale, to controlling cost and enhancing competition in market. There must bemany differences in the M&A between apparel industry and other industries because of it's particularity. Although there are a lot of research works about M&A and M&A performance, the study on apparel enterprises M&A performance is rare involved. Therefore, it is necessary to analyze the apparel enterprises M&A performance and probe into the corresponding problems during and after M&A.Firstly, the writer chose one method-finance analysis which is proved to suit to China apparel enterprises. And then using factor analysis and M&A performance model to research M&A performance of China list apparel corporations. At the same time, the writer made some case study. This connected practice and theory and the more important is the thesis tries to explore a practical way for China apparel enterprises to increase their M&A performance.The thesis is firstly built on the study of a large number of document materials; then during the researching and writing period, the writer investigated and interviewed some typical list corporations such as Youngor Group, Threegun Group, Erdos Group etc, through which considerable first hand materials were harvested. Moreover, in Jan. 2003, the writer as a major member participated in a project from 名古屋大学 -China Apparel Industry Development of Eastern Asia Economy Research, and gained much knowledge of M&A. Since Sep. 2003, the writer has worked part-time in Shanghai Investment and CounselCompany. In this company, the writer has taken part in several projectsof the industry study.Chapter one describes the background of this thesis and introduces theconstruction of the thesis and the theories and methods which use in thethesis.Chapter two first definite M&A, type of M&A and the motive of M&A,then describe the M&A development of international and civilenterprises. At last making a detail analysis on typical internationalM&A cases.Chapter three describes the M&A research method to M&A performanceof list corporations and analyse why to choose finace analysis method.And then expatiates on the theory and steps of finace analysis. At lastusing this method, research the M&A performance of China listcorporations according to different types of M&A and different stockshare.Chapter four probes into the relationships of M&A and apparel industryconnecting, optimizing, diversification strategy and continuousdeveloping. And also combines some cases to prove theory.Chapter five analyse the two main factors which influence M&Aperformance-integrating and government involving. During theanalysis, the writer put Threegun M&A case for example.Chapter six expounds the conclusion of the thesis and gives someproposes to the next study.This thesis strives to have the value of reference for researchers and operation people of apparel industry M&A and do some help to increase M&A performance.