Performance Evaluation Of "PE+listed Company" Model M&A

As China’s economic development rate has slowed in recent years,supply-side reform continue to advance,and corporate development is facing new challenges.For enterprises,only by increasing market share and forming a brand effect can we better cope with the challenges.This can be achieved through mergers and acquisitions.Therefore,the form of corporate mergers and acquisitions has also shown an increasing trend.Under this general context,the merger and acquisition model of listed companies and private equity funds to establish industrial merger and acquisition funds,namely the "PE + listed company" model,has also developed rapidly in China.The Tiantang Guigu Dakang Developing partnership enterprises was established in September 2011 by Hunan Dakang Pasture Farming CO.,LTD and Heaven-Sent Capital Management Group Co.,Ltd..It is the first industrial M&A fund in China.Since then,a number of listed companies have established industrial M&A funds and formed a new upsurge in mergers and acquisitions of industrial funds.However,since the "PE + listed company" model only appeared for seven years,compared with other mergers and acquisitions model time is still relatively short,so the study of this model is relatively small,and many related theoretical and practical issues need to be discussed in depth.Through research on establishing incentives,it was found that due to the professional analysis ability of private equity funds in mergers and acquisitions and the ability to screen targeted projects,coupled with the fact that listed companies are more familiar with the industry and higher levels of management,the combination of the two has Help improve the success rate and performance of M&A.This paper selects Aier Eye Hospital Group Co.,Ltd.and several private equity institutions to set up industrial M&A funds,and evaluates the performance of listed companies and private equity funds in the establishment of industry M&A funds through the event method,balanced scorecard,and economic growth.The three methods evaluate the performance of Aier Ophthalmology before and after the establishment of an industry M&A fund in terms of short-term effects,long-term impact,and value creation.It is analyzed whether the establishment of an industrial M&A fund affects the performance of listed companies.Through the analysis of event methods,it is found that the establishment of industrial M&A funds can boost share prices in the short term,increase the market value of listed companies,increase the turnover rate,and bring the market value to market,forming market hot spots and attracting market attention;and evaluating performance through balanced scorecards.It was found that the establishment of an industrial M&A fund can improve the company’s financial environment,make rational use of working capital,expand the scale of operations,and improve the management situation.Through the analysis of the economic value-added from 2011 to 2016,after the listed companies set up industrial M&A funds,they can achieve Growth in performance can achieve value creation.By comparing listed companies that set up industrial merger funds in the same industry,listed companies that did not set up industrial merger funds in the same industry,and listed companies that did not set up industrial merger funds in the relevant industries,we found that the establishment of industrial merger funds had a more significant impact on value creation,setting up industries.The listed companies of M&A funds have expanded the scale of operations and basically achieved value creation.Through the analysis of this paper,the following conclusions are drawn: Firstly,the establishment of an industrial merger and acquisition fund by a listed company will create a market hot spot in the short term and increase the market value of the company.Secondly,after the establishment of an industry merger and acquisition fund,it can promote its own integration vertically and horizontally to expand its operating scale;Finally,the rational use of industrial M&A funds can realize the creation of corporate value.