Research On The Performance Of Pure Pearl Group Cross-industry M&A

With the continuous development of society,the structural contradictions in China's economy are constantly emerging.The problems of overcapacity,high cost and weakened competitiveness in traditional industries have become more apparent.In recent years,the “new normal” characteristics of China's economic growth have become increasingly prominent.Some enterprises,whose industries are overcapacity or constrained in profit growth,have chosen to transform their businesses through mergers and acquisitions to achieve sustainable development.Cross-industry mergers and acquisitions have begun to emerge.Based on this background,this thesis chooses to study the theme of cross-industry M&A,and takes Pure Pearl Group as the object of this research.Pure Pearl Group belonged to the traditional manufacturing industry.Through the cross-industry M&A of three private hospitals,the company successfully achieved strategic transformation and realized the common development of two main businesses,which is certainly typical.This thesis combines literature research and case study.It introduces the background and significance of this research,organizes and analyzes the domestic and foreign literatures,and sets the analysis framework of the cross-industry mergers and acquisitions performance.Based on these,this thesis analyze the case: Firstly,it introduces the M&A and the industry in which they participated,and analyze the three main reasons for the cross-industry M&A of Pure Pearl Group: 1.Find new profit growth points and avoid delisting crisis.2.Avoid industry entry barriers and quickly achieve strategic transformation.3.Decentralize operating risks and achieve synergy.Then according to the established M&A performance analysis system,the financial performance of the M&A is analyzed through the accounting data,financial ratio and the achievement of the performance commitment of the M&A target,the non-financial performance of M&A is analyzed from the aspects of strategic transformation and synergy.According to the performance analysis of the whole merger and acquisition,a positive performance evaluation conclusion is drawn.Finally,three inspirations are concluded: 1.Choose proper M&A time and targets.2.Evaluate targets' value and choose payment methods scientifically.3.Introduce management team to improve the efficiency of M&A integration.