Industrial Performance Of M&A

Mechanical engineering industry plays a pivotal role in the national economy, China's Twelfth-Five-Year Plan clearly states that the industry has to adhere to structural adjustment as the main line during the period, continue to accelerate technological progress and innovation as the central link, and promote industry upgrades and products upgrades. Mergers and acquisitions is an important means of resource allocation, so the plan also points out that China should take structural adjustment as an opportunity to promote corporate mergers and acquisitions, which would speed up the transformation of enterprises to form an industrial structure with high industrial concentration, complementary advantages, coordinated development. This article chooses mechanical engineering industry as an example, studies the relationship between M&A and market performance from aspects of industrial concentration, technological innovation, labor efficiency.This article first made an overall inspection of relationship among mergers and acquisitions, M & A type, industry evolution and industry performance on the theoretical level. It selected the 1999-2009 data of the industry and the acquisition analysis the situation of industry and the M & A, selected the profitability, industry concentration, technological innovation, labor efficiency as measurements of industry performance. First, overall studied the relationship among the mergers and acquisitions, M & A type, and industry performance, then specific studied how the size of M&A effects the industry performance in each dimension. Second, on the basis of division the M&A type, discuss the effect of M & A and industrial performance. Finally, divided industry evolution by year, studied the effect of industry evolution for M&A and industry performance.The results showed that M&A had a certain positive role in promoting all dimensions of industry performance in the Mechanical engineering industry, but the effect for the industry concentration and profitability was not obvious. Different types of M & A impact industry performance differently, the non-related M & A made a larger proportion, resulting undesirable effects in industry performance. It can be seen that industrial concentration is still at a low level in China, indicating that there is a mature stage in the mechanical engineering industry yet. We should intensify the related M&A to make the mechanical engineering industry can be bigger and stronger.