Study On The Motives And Consequences Of The Industrial Chain M&A In The Home Industry

With the rise of industry 4.0,informatization and intelligence of the industry d evelop very fast and China's manufacturing industry now is facing transformation an d upgrading.As one of the typical representative,the traditional furniture manufactu ring industry is now experiencing a transition from furniture manufacturing industry to home integrated service industry.At this time,industrial chain mergers and acq uisitions(M&A)have become good means for furniture manufacturing enterprises to achieve rapid transformation.Yihua life,as one of the representative enterprises,sei zed the opportunity of industry by quickly adjusting the company's development str ategy.It firstly created a complete home industry chain in 2015 through the industr ial chain M&A which have achieved leapfrog development.Therefore,this paper chooses Yihua life as a study case.Based on the researc h of the household industry,this paper firstly analyzes the development process and industrial chain structure of the household industry,and then analyzes the current situation and macro reasons for the M&A of the industrial chain.On this foundatio n,it establishes the analysis framework of the motives and consequences of the M&A of the home enterprise industry chain which provides the analysis basis for cas e study.Secondly,this paper makes a case study of Yihua life company,summariz es its M&A process based on the nine merger and acquisition activities implemente d by the enterprise from 2012 to 2015,and then analyzes the characteristics of the M&A behavior of Yihua life from the types of M&A,such as the selection of M&A objectives,pricing methods and the payment of consideration.Thirdly,it analyz es the motivation of M&A of Yihua life.Finally,the paper analyzes the implement ation effect of Yihua life industry chain M&A from two aspects of short-term mark et performance and long-term financial performance,summarizing the experience an d shortcomings of its industry chain M&A.This paper draws the following conclusions:(1)there are two kinds of motivat ion,one is strategic motivation which concludes building industrial chain and impro ving the core competitiveness,and the other is economic motivation including formi ng a scale economy,reaching the financial synergy and reducing the transaction cos t.(2)the industrial chain M&A of Yihua life is generally recognized by the market,which increases the wealth of shareholders,and the vertical M&A gains excess mor e income than horizontal M&A;(3)the M&A of Yihua life industry chain has obtai ned the resource advantage,reduced the production cost and tax fee,expanded the profit space,expanded the products of enterprises,enhanced the scale of enterprises,expanded the market,and improved the overall competitiveness of enterpri ses;(4)Yihua life industry chain M&A need to strengthen the integration,in order to impr ove the efficiency of the operation and reduce the financial risk and management ri sk of mergers and acquisitions...