A Case Study On Performance And Risk Of Continuous Merger And Acquisition Of China Grand Automotive Services Group Co.,Ltd.

With the rapid development of China’s capital market,domestic M&A market is increasingly active,the number and amount of transactions in the M&A market have repeatedly hit new highs.Because mergers and acquisitions have a huge impetus to the development of enterprises,enterprises are increasingly willing to participate in M&A activities.Continuous mergers and acquisitions is a new trend in the current M&A market,its performance is that listed companies frequently occur in M&A during a period of time,China Grand Automotive Services Group Co.,Ltd is a typical representative of such companies.Therefore,the thesis uses the form of case analysis,analysis includes the motivations,performance and risks of continuous mergers and acquisitions of Grand Automotive,hope to have a better understanding of continuous mergers and acquisitions.The thesis uses literature research method,case analysis method,financial index method and other methods to analyze.Firstly,by collecting and summarizing related literature and basic theory at home and abroad,introduce the definition of M&A,M&A type,M&A performance,and evaluation method of M&A performance.The relevant theoretical basis includes: Scale economy theory,Efficiency theory,Market power theory,M&A risk theory.Secondly,the thesis introduces the cases of merger and acquisition of Grand Automotive in the three years after it is listed on the market,mainly includes: the historical evolution of Grand Automotive,equity structure,the actual controller,company business summary,the course of major M&A events,motivation of M&A.Thirdly,using Balanced Scorecard and Economic Value Added to evaluate the performance of Grand Automotive continuous mergers and acquisitions.Overall,Grand Automotive has expanded the company’s original sales market and achieve national layout through frequent mergers and acquisitions over the past few years.By calculating Economic Value Added,we find that the continuous merger and acquisition of Grand Automotive has created value for the company,long-term performance is good.Frouthly,the thesis analyzes the risks existing in the continuous merger and acquisition process of Grand Automotive,mainly includes: financial risk,goodwill impairment risk,integration risk.Finally,draw the enlightenment and research conclusion of the thesis.Grand Automotive has obtained many excellent customer resources and considerable income sources through continuous mergers and acquisitions,consolidated the company’s position in the automotive sales industry,increased core competitiveness and market share,the long-term performance is good.The research of the thesis can provide reference for other automobile sales enterprises in China.