The Research On The Performance Of Cross-industry M&A Of Kaiyuan Instrument Company

In the capital market,due to the changing background of the times and the intensification of market competition,many companies in the industries with poor sustainable development ability hope to seek diversified development or strategic transformation through mergers and acquisitions,and hope to make their own sustainable development capacity and market competitiveness can be improved to some extent.The acquirer realizes diversified industrial operations by absorbing target enterprises with completely different industry backgrounds and extremely low correlation,and realizes the transformation of the main business through the integration and divestiture after merger and acquisition,and finally realizes the strategic transformation of the enterprise.For domestic M&A,many hot industries have naturally become the focus of M&A in the A-share market,such as games,education,and environmental protection.These industries have great development potential and development potential from the current stage.However,many of these industries are in the initial stage of development,and some companies are unable to further expand their scale of operations due to lack of capital support.These enterprises are expected to be able to achieve through mergers and acquisitions due to their poor sustainability.For the listed companies in transition,it is a good M&A target.This is also the basis for the case selection in this article.This article takes the listed company Kaiyuan Instrument,which is in the manufacturing industry,to cross-industry mergers and acquisitions in the education industry,and the case of Zhongda Yingcai.Based on the analysis of the acquisition motives of Kaiyuan Instruments,the financial research method was used to analyze the 13 financial indicators of profit,operation,debt repayment and development capability before and after the Kaiyuan instrument merger and acquisition.Then,the event research method was used to analyze the short-term and long-term market performance before and after the Kaiyuan instrument merger and acquisition.The analysis results show that the purpose of mergers and acquisitions between Zhongda Yingcai and Hengqi Education in Kaiyuan Instrument Cross-industry M&A has been basically achieved.And the performance after the merger has also reached the expected level.At this stage,it seems that the merger is successful.In terms of financial performance,the company’s profitability,operational capability and growth capacity have been greatly improved in the year when Kaiyuan Instruments completed cross-industry mergers and acquisitions,but its solvency has been weakened due to mergers and acquisitions and new business characteristics.In terms of market performance,in the short term,Kaiyuan Instruments’ cross-industry mergers and acquisitions can bring significant extraordinary benefits to corporate shareholders.But in the long run,this kind of income shows a trend of rising first and then falling.And its new business development model has not yet reached a stable state,and it is still in the process of transformation.The original instrument and instrument industry is constantly being divested,and the long-term performance and sustainable development capability of the new vocational education business has yet to be continued.Observing,it is necessary to be cautious of the business risks of new businesses and the risk of fraud arising from related transactions during the divestiture of the original business.This paper concludes that Kaiyuan Instruments has quickly entered the new industry through mergers and acquisitions to find new profit growth points,enhance its sustainable development capability,and finally achieve the goal of strategic transformation.For companies in the manufacturing industry,the performance of their M&A performance will be affected by many factors,such as the business situation of the two parties before the merger,the choice of the target company,the industry development trend of both parties,and the capital market.The degree of recognition and macro policies.Therefore,when dealing with the transformation of M&A in manufacturing enterprises,managers should maintain basic principles and should not harm the relevant interests of investors.For investors,they should maintain a rational attitude and be cautious about the risks involved.The author hopes that through the analysis of this case,it can provide a basis for the theoretical and empirical research on cross-industry mergers and acquisitions of China’s manufacturing enterprises.And provide some helpful suggestions in the capital market for other companies that want to achieve strategic transformation through cross-industry mergers and acquisitions.