Research On The Performance Evaluation Of Mergers And Acquisitions Of Lanzhou Minbai Group

With the market saturation and the slowdown in China's economic growth,the departmental retail industry is facing more and more challenges.In addition,the state has introduced a series of industrial structure adjustment policies to boost the upgrading of business structure.Many department stores and retail companies have joined the merger and acquisition in order to seek breakthroughs.Under the background of large-scale changes in the department store retail industry,Lanzhou Minbai is also actively exploring the mode of corporate expansion.Based on the existing business model and management experience,Lanzhou Minbai has chosen the method of asset restructuring to consolidate its competitive position in the industry.On March 18,2013,Lanzhou Minbai purchased 100 shares of Nanjing Huanbei Market Management Services Co.,Ltd.held by its controlling shareholder China Honglou Group.Since the reorganization of this asset,Lanzhou Minbai's business scope has expanded from the integrated market to the professional market has expanded its business scope from Lanzhou to Nanjing,where the economy is more developed.Compared with the model selection and motivation analysis of M&A,the performance of M&A is also a problem that the theoretical circles pay more attention to.This paper takes the performance evaluation of M&A as the perspective,based on the two dimensions of market performance and financial performance,and evaluates and analyzes the performance of the acquisition of Nanjing Huanbei in the form of case analysis.Based on the evaluation results,the relevant conclusions and inspiration are finally drawn.It can provide some reference suggestions for the follow-up reorganization and development of Lanzhou Minbai,and it also serves as a reference for other department stores and retail companies.First of all,this article starts from the overall background of the department store retail industry,and puts forward the significance of this paper's research.It also briefly introduces the domestic and foreign status of research on performance evaluation of asset reorganization performance and the theoretical basis of the research.Then,through a review of the current research situation,a set of performance evaluation system suitable for this case study was established to lay the foundation for a case study in the latter case.Afterwards,the case analysis method was used as the main method to introduce the two sides of the case,the transaction process and the plan,and the reorganization motive.Through the combing analysis of the literature research method and the case analysis method,a set of performance evaluation system suitable for this case was constructed,namely the combination of event research method and financial index method,and the M&A performance of the case is evaluated and analyzed from two perspectives: short-term(market performance)and long-term(financial performance).The event research method is mainly based on the study of stock price changes.It selects the window period and calculates the cumulative excess return rate of the case companies within the window period.The short-term performance of theevent is evaluated through the calculation results.The financial indicator method is to select the financial indicators suitable for the case enterprise from the four dimensions of solvency,operational ability,profitability and development ability to construct an evaluation index system,and conduct comparative analysis with the industry average,and finally observe the change trend and reach a conclusion.Through case analysis and performance evaluation,it is found that Lanzhou Minbai obtained the conclusion that the long-term and short-term performance of Lanzhou Minbai's asset restructuring has not improved.According to the research conclusions,related revelations and suggestions were drawn: focusing on value evaluation of target companies before reorganization,focusing on the planning of enterprise development strategies,and focusing on the transformation of the company's follow-up business model.It is hoped that these suggestions can provide reference for the follow-up development of Lanzhou Minbai and the restructuring of other department stores and retail companies.