M&A Performance Study Of Baofeng Group Co.,Ltd

Mergers and acquisitions are an important means for companies to obtain resources,expand the scale of operations,and realize company strategies.Therefore,they have always been a hot topic of concern in the capital market and theoretical circles.M&A funds,as a branch of private equity investment funds(PE),are sought after by the capital market because they can use multiple financing tools and can quickly improve their consolidated company performance through specialized management.Since 2011,with the encouragement and support of government departments,China's "listed companies + PE" type M&A fund has been established.In recent years,it has shown an explosive growth trend.As a new form of M&A activity,what kind of advantages does the M&A activity of a traditional listed company have and how does it perform on M&A performance? These issues deserve to be examined.This article selects the middle class stocks to return to the A-share market leader-Storm Group as a case study object.Firstly,based on the analysis of past M&A funds and results of M&A performance literature,the background and operation process of Stormwind Group's establishment of a new type of M&A fund,the Stormwind M&A Fund,are described in detail;then,the operational advantages and M&A fund performance.As a result of the performance consequences,it was discovered that the new M&A funds mainly aimed at improving the financial performance and capital market performance of listed companies by improving the market advantages,synergies and market share of listed companies.Finally,based on the above analysis,this article forms the following conclusions: After China's private equity funds and listed companies jointly set up an industry merger and acquisition fund,it not only solves the short board limitation problem of the PE side,but also enhances the strength and valuation of the listed company,and it takes up the listing.Under the premise of a small amount of funds,the company quickly deployed strategic plans through leveraged buyouts.At the same time,using PE's professionalism greatly circumvented various types of M&A risks and formed a virtuous circle of mutual benefit and mutual development.