Study On The M&A Financial Performance Of JONHON Taking Over Forstar

As one of the most important ways of company's development, M&A plays a key role in growing, transforming and improving of the enterprise. Dating back to the 1980 s, the earliest M&A activity shows up in China, and now, it has been greatly improved in both quantity and quality after decades of development. M&A activity shows a positive meaning in resource's balancing, enterprise's dealing with the fierce market competition and achieving the long-term strategic goals. But when focusing on the progress of the M&A activity's development, we notice that, not every M&A activity could end up with success. Living in the period of M&A activity's large-scale development, this article combs the theoretical system of M&A and study deeply in the typical M&A case which has already happened, invests whether it bring a raise in the related company's performance or not, and wish to keep digging the value of M&A activity.M&A activity is one of the most important ways of achieving industrial integration,improving enterprise's economic benefits, and promoting the enterprise's development.Although domestic and foreign scholars have already carried out in-depth studies form multiple angles of enterprise's M&A activity, there still have a lot of aspects worth discussing because of the diversity and complexity of it. The study of M&A activity has a huge theoretical and practical meaning, especially in the background of current economy, when Chinese enterprises are in the period of deepening reform and economic transformation.In this article, firstly, we review the existing research results of M&A, and define the concept of M&A based on these, comb the enterprise's M&A activities from the theoretical angle, state the motivation of M&A activities by using the economics and management theory and the necessity of performance evaluating after the M&A activity; Then analyze the case of JONHON(China Aviation Optical-Electrical Technology Co, Ltd) Taking over Forstar,introduce the background and important processes and discuss the motivation of M&A during the analyzing, all these lay the foundation for performance evaluation in the latter part. Based on the motivation analysis, this article evaluates the performance of both sides by using the event analysis and financial analysis method, analyze the M&A performance by focusing on Debt index, profitability index and growth index from the point view of financial analysis,then summarizes the results, which shows that, although JONHON didn't show a significant growth in it's solvency, operating capacity and profitability after the M&A activity, but achieved it's goals in strategic development based on the analysis of comprehensive index and growth ability; from the view of Xi'an Forstar, we notice that it's financial performance shows extremely excellent, it is a great result in return of the M&A motivation. Finally, thisarticle summarizes the redeeming values in this M&A case and wish to offer some reference guidance to M&A activities in the future.This article analyzes the motivation of the M&A case by using the method of combining normative research and empirical research, and do the in-depth analysis for the case by using the method of event analysis and financial analysis from the perspective of short-term performance and long-term performance, evaluates the M&A case's financial performance effectively. However, due to various reasons, there are still shortcomings in this article, the time after M&A case happen is not long enough to give a long-term-performance evaluation,which worth a further study in the future.