Research On Cross-border Mergers And Acquisitions Of Shandong Ruyi Group

China's textile and garment industry has become the world's largest in terms of production volume and export volume.With the continuous advancement of economic globalization,China is gradually integrating into the global value chain system of textile and apparel products.However,compared with developed countries,there is still a big gap in technology research and development,brand building and high-end equipment.As China's labor costs increase year by year,the original price-based competitive advantage gradually weakens.Therefore,some enterprises have begun to find new breakthroughs,giving up the production and processing of some labor-intensive products,and the countries with lower production costs and Replace the area.Faced with such severe challenges,how Chinese textile and garment enterprises gain competitive advantage in the international market has become a difficult problem for their development.With the continuous implementation of the globalization strategy,“ transnational mergers and acquisitions ”began to enter the eyes of all walks of life in China.Some domestic large enterprises began to gradually try to use this measure to open up the international market,and the textile and garment industry,which is the pillar industry of China,naturally Exceptionally,therefore,cross-border M&A has become an important measure for Chinese textile and garment enterprises to seek breakthroughs in overseas markets.However,it turnsout that the implementation of cross-border mergers and acquisitions is not an easy task.Many Chinese companies' cross-border mergers and acquisitions ended in failure.Even if they succeeded,they could not be integrated in the later stage,so that losses occurred.Therefore,in order to achieve successful results in mergers and acquisitions,it is necessary to consider various factors and have various conditions and capabilities.Before the implementation of the merger and acquisition,Shandong Ruyi Group was mainly engaged in the production and operation of the textile industry.It has not yet involved the garment industry.The business scale is relatively small.Coupled with the lack of influential brands,the market has little room for development.For the Ruyi Group clothing brand in the international market.The recognition degree is low,and since the outbreak of the global financial crisis,the external environment has been deteriorating.Due to the lack of corresponding competitive advantages,Ruyi Group has difficulty in achieving breakthrough development.However,with the continuous implementation of the cross-border M&A of Ruyi Group,the international market has gradually opened up,and the clothing industry has been included in its own business scope,and it has gradually become the main business of Ruyi Group.Nowadays,Ruyi Group has realized the transformation and upgrading of the company through cross-border mergers and acquisitions,and has a high technical advantage and brand advantage.This paper firstly sorts out the cross-border M&A process of Shandong Ruyi Group,and finds that most of its mergers and acquisitions are textile and garment enterprises,and the merger cases in 2016-2017 are concentrated.Secondly,it analyzes the motivations and strategies of Shandong Ruyi Group's cross-border mergers and acquisitions,and finds that it mainly wants to obtain advanced technology,brand and marketing channels through cross-border mergers and acquisitions,accelerate the pace of enterprise transformation,and enhance the competitive advantage in the international market,thus further expanding in overseas markets.Get better development.Then,through financial indicator analysis,the financial performance of Shandong Ruyi Group is analyzed from four aspects: profitability,solvency,operational capability and growth ability.From the perspective of various financial indicators of Ruyi Group,it is obtained through cross-border mergers and acquisitions.The better M&A performance indicates that its cross-border M&A is successful and can be used as a reference for other domestic private textile and apparel companies to cross-border M&A and help them establish confidence in cross-border mergers and acquisitions.Finally,it summarizes the problems existing in the process of cross-border M&A in Shandong Ruyi Group and puts forward corresponding countermeasures and suggestions.