Research On The Performance Of Traditional Retail M&A

Nowadays with the rapid development of economic,the competition between the companiesis more and more intense.In the company’s development process,whether its positioning or strategic planning need to keep up with the trend of the times,otherwise the company is difficult to operate or company may be replaced by emerging enterprises.In this situation,more and more enterprises choose mergers and acquisitions to upgrade the strategy.In recent years,the development oftraditional retail enterprises has become increasingly difficult.There are two main reasons,on the one hand,the overall development of the industry is blocked because of the influence of macroeconomic,on the other hand is intensified competition among industries.To promote the business,more and more traditional retail enterprises choose mergers and acquisitions to upgrade.Therefore,this paper selected the merger of Suning commerce and Red child as the research object to dothe analysis of performance after the company mergers and acquisitions.According to the analysis results,this paper puts forward some suggestions on the development of Suning commerce and the traditional retail enterprises and this study has some practical significance.Firstly,this paper studies the relevant literature and theory of M & A and M &A performance.Secondly,on the basis of analyzing the present situation of the development of China’s retail industry,we carry out the performance analysis of Suning commerce.In order to ensure the comprehensiveness of the analysis,we do the analysis from three aspects including the stock value and financial indexes and non-financial indexes.In the analysis of financial indexes performance,in order to reduce the impact of industry factors on business operations we also select the comparative analysis of the same industry enterprises whichcan help to improve the accuracy of analysis.From the analysis of stock value,we can learn that during the research window,the company’s Cumulative abnormal return signs are obvious,from the analysis of financial indexes,we can learn that the company in all aspects of capacity had increased,from the analysis of non-financial indicators,after the acquisition the company has a good development in the following areas,including share,brand image,supply chain management,logistics system construction,business innovation.Therefore,this paper believes that the acquisition is favorable for Suning commerce.And through this study,wealso found a lot of valuable lessons worth learning,based on this,we also putforward some suggestions in the M & Abusiness of traditional retail industry,hoping to be able to help the development of traditional retail industry.