Performance Analysis Of Jinjiang Group's Acquisition Of French Louvre Group

With the deepening of economic globalization,capital flows between countries and international direct investment activities have gradually become more frequent.As one of the ways of foreign direct investment,cross-border M&A is relatively fast and effective.Therefore,many companies choose cross-border M&A as a way of foreign direct investment,and attempt to exploit overseas markets through mergers and acquisitions,optimize resource allocation and enhance international competitiveness.Chinese companies have gradually gained a certain strength after 40 years of reform and opening up.In recent years,due to the upgrading of domestic industries,most of the domestic market has become saturated,the influence of the company's own strategic adjustment,coupled with the national “going out” strategy,the strategic focus of a large number of Chinese companies has begun to shift to the international market and participate in the activities of global resource reconfiguration and global asset restructuring.The amount of cross-border M&A has increased year by year and reached its maximum in 2016.In the case of cross-border mergers and acquisitions in China over the years,mainly concentrated in the industrial and manufacturing industries,so the existing case studies on cross-border mergers and acquisitions are mainly concentrated in industry and manufacturing,and the cross-border M&A case studies in other industries are relatively less,cross-border M&A research on the hotel industry is even less.Nowadays,China's hotel industry market is approaching saturation.In addition,the tourism industry at home and abroad has developed rapidly in recent years.Therefore,more and more hotel companies in China hope to go abroad and open up overseas markets,but their experience is relatively insufficient.As a long-established company in the domestic hotel industry,Jinjiang International Hotel has made many cross-border mergers and acquisitions,and has rich experience in cross-border mergers and acquisitions.Therefore,this paper chose the largest domestic multinational M&A hotel case in China at the time-the Jinjiang shares acquired in 2014,the French Louvre Group The case study object,through analysis,summarizing the reasons for the success of Jinjiang shares acquisition and some problems after the merger and some suggestions,I hope to provide some reference value for the future cross-border M&A activities of hotel companies in China.This article is divided into three parts.The first part introduces the research background and significance of the article,the research results of relevant scholars on cross-border mergers and acquisitions and related cross-border M&A theory.The second part introduces the detailed process and content of this M&A case and a detailed analysis of the performance of this cross-border M&A.The performance analysis part uses the event research method,the accounting index method and the DuPont analysis method.The event research method analyzes the short-term performance of mergers and acquisitions,mainly by observing the impact of mergers and acquisitions on the stock price during the window period to analyze the short-term performance of Jinjiang.The accounting research method and DuPont analysis method analyze the long-term performance of M&A,mainly comparing the financial performance of Jinjiang shares before and after the acquisition of profitability,solvency,operational capability and enterprise growth ability,and adopting the DuPont analysis method.In-depth analysis of the factors affecting financial performance.The third part is mainly the conclusions drawn from this paper and some inspirations for Chinese hotel companies to go out in the future.Through the short-term performance and long-term performance analysis of Jinjiang shares before and after the merger,this paper believes that the cross-border M&A is generally a relatively successful merger,and the acquisition has created value for Jinjiang.At the same time,this paper summarizes the reasons for the success of M&A and the problems existing after M&A,and puts forward suggestions on the cross-border M&A of Chinese hotels in the future from the four aspects of target selection,payment,payment and financing.