Research On M&A Performance Of JinJiang Group Based On EVA Analysis

Mergers and acquisitions(M&A)have always been a hot term in the development of enterprises.Through mergers,acquisitions and other activities,enterprises expand business production scale,reduce business risks,increase market share and competitiveness,optimize the integration of resources and play a synergy effect,which is named "1 +1> 2" effect.However,could M&A always succeed and achieve their original purpose? In the context that the M&A of hotel industry and even industry-wide in full swing,in order to truly reflect the impact of the M&A event of hotel industry and provide suggestions for future M&A development,this paper uses the EVA indicator to analyze Jinjiang Group M&A case.This article selects Jinjiang Group as a representative company in the hotel industry,and uses the case study method,literature research method,and literature research method.In 2016,this group acquired the Plateno Group and Vienna Event happened.By introducing both parties' information,M&A background,M&A procedure,and M&A motives,etc.,and using related theories of M&A and performance evaluation,this paper establishes a performance evaluation index system based on EVA,combining quantitative and qualitative analysis.According to this system,a comprehensive analysis of the performance of M&A of Jinjiang Group is conducted.Finally,it evaluates the successfulness of this M&A event,and proposes constructive suggestions for enterprises M&A activities.Based on analysis of Jinjiang group,the early stage of the M&A performance level is weak,the later period of the M&A performance accompanied by a synergy effect have a positive influence on many aspects,for example,higher profitability and lower financial risk level,the operating capacity and asset utilization efficiency are improved.The M&A case of Jinjiang Group is successful,and it still has a good potential persistently in the future.The conclusion of this analysis is as follows: First,the appropriate M&A to the benefit of enterprise development,but we must pay attention to the integration work after the M&A;Secondly,a performance evaluation index system based on EVA can better explain corporate performance;Thirdly.EVA as a new performance evaluation method in China from foreign countries,we need to improve the localization of EVA,improve EVA and promote it in the enterprise.Finally,Suggestions are made for Jinjiang Group and its industry: rational choice of M&A,pay attention to the M&A integration,develop the innovation potential and establishment of EVA as the core performance evaluation system.