A Case Study Of Xiangeqing's Failed Merger And Acquisition

Since 2014,hundreds of mergers and acquisitions happened in the stock market.Nowadays,the traditional industry transformation encountered bottlenecks,the new economic growth point appeared,and it is a national innovation era,new technologies such as the Internet on the rise,and a lot of capital promoted the campaign,these factors lead is a financing initiative for the listed company actively carry out mergers and acquisitions.However,in all cases,70% of mergers and acquisitions is a complete failure.Through mergers and acquisitions many enterprises not only failed to achieve the strategic expansion,but also makes the enterprises' risk continuously improved.It had a negative impact on the long-term development of the company.In December 2012,after the introduction of the "eight regulations" of the central government,the high-end catering industry was affected.This macro-environment change caused the performance of Xiangeqing to drop from the peak to the bottom.It decided to enter the emerging environmental protection,big data and the new media industry,hope to use the development advantage of the emerging industry to find a new development momentum for the company.However,through the analysis of Xiangeqing's M & A situation,we can see that the merger and acquisition is a failure,not only did not make the company to turn losses into profits,but also bring a huge financial burden to the company.The scale of Xiangeqing's assets fell sharply.Firstly,this paper introduces the theory of M &A.Secondly,it introduces the basic situation of Xiangeqing,the M & A motivation and the whole process of its M&A.Finally,this paper analyzes the internal reasons for the failure of Xiangeqing situation M & A,and puts forward corresponding measures to deal with the failure of M & A.I hope through the study of this case,to provide some reference for the M & A of other companies.