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The Synergy Effect Of M&A In Education Industry Under The Background Of The New Private Education Promotion Law

Posted on:2021-03-17Degree:MasterType:Thesis
Country:ChinaCandidate:Y T ChenFull Text:PDF
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With the rapid growth of China's economy and the gradual improvement of the operation mechanism of the capital market,mergers and acquisitions have become a common capital operation method for corporate expansion to achieve leap-forward development or overall transformation.In recent years,with the revision of the "Private Education Promotion Act" and the rapid development of the education and training industry,China's education industry has set off a climax of mergers and acquisitions.In particular,the newly added provisions allow the organizers to independently choose to set up profit-making private schools and register as legal persons while obtaining school profits,which is good for M&A activities.In addition,the content of the newly established laws and regulations of enterprises' independent determination of charging standards and government implementation of subsidies also have a positive impact on mergers and acquisitions in the education industry.Companies in the main education industry have expanded their volumes through mergers and acquisitions.Traditional enterprises achieve diversified operations or business transformation through cross-industry M&A education companies.However,the fierce capital and market competition environment may lead to overheating of capital and radical M&A behavior,leading to blind mergers and acquisitions,high costs,high equity pledge rates,and unreasonable performance commitments,resulting in a series of operational management issues like poor post-merger performance and reduced goodwill.Based on the above path,this article specifically analyzes the positive or negative impact of the new "Private Education Promotion Act" on education industry mergers and acquisitions.Based on the analysis of the industry's overall data,The Baiyang's M&A of Mars Era is a typical case.The background,motivation and process of the equity repurchase are analyzed,and by comparing the operation status of the company and the indicators before and after the merger and acquisition,as well as the industry's overall indicators for the same period,the merger was demonstrated in the operating synergy,Management synergy and financial synergy in three aspects.This article believes that the merger has not achieved significant synergy.In terms of operating synergy,the performance is a decline in its profitability index,a significant impairment of goodwill,and failure in gambling agreement;Partially achieved management synergy,manifested in the enhancement of business resource integration and asset management,but the lack of collaborative management and cultural integration;The realization of financial synergy is also lacking,manifested by the existence of a certain stock pledge risk,a decline in debtsolvency indicators,tax saving effects and poor market expectations.At the same time,this article also conducted an in-depth analysis of the overall effect of mergers and acquisitions,and concluded that the net present value of the investment is less than 0,which is far from the investor's expected return.Finally,the case triggers enlightenment,explores the commonality of synergies of mergers and acquisitions of the same type of enterprise,and makes reference suggestions...
Keywords/Search Tags:M&A in the education industry, synergy, Private Education Promotion Act, Performance commitment, equity pledge
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