Research On M&A Performance Of Based On Alibaba's Acquisition Of Ele.me

With the high speed development of the society,the competition of the market economy is becoming more and more fierce.Mergers and acquisitions(M&A)among enterprises have become a significant means to adjust resource allocation and improve core competitiveness in market economic activities.As a key industry supported by China,the number of enterprises in the Internet industry is growing rapidly.At the same time,M&A among Internet enterprises are becoming increasingly frequent.To a certain extent,the study on the M&A performance of Internet enterprises is helpful to analyze the value of M&A of Internet enterprises.In April 2018,“Alibaba”,“Ant Financial Services” and "ele.me" jointly announced that “Alibaba” has signed an acquisition agreement to purchase "ele.me" with $9.5 billion together as the wholly-owned acquisition.When the acquisition is completed,"ele.me" will become the logistics infrastructure for “Alibaba” 's new retail scene.This article selects the “Alibaba” 's acquisition of "ele.me" as the research object,in the case of "ele.me" to "Alibaba" M&A motivation as a starting point,analysis the acquisition performance of "Alibaba" what effect,discusses the case of Internet in our country enterprise merger and acquisition methods how to achieve further development.The research approach of this paper is not from the existing case analysis and single-angle argumentation,but the multi-angle analysis of a case for a comprehensive study of the problems reflected in the case.The “Alibaba” 's acquisition of "ele.me" is one of the vital layout for "Alibaba" to further develop new retail.Taking the development status of China's Internet industry and special catering industry into consideration,this case is selected to analyze the motivation of the Alibaba's acquisition of "ele.me".Meanwhile,it evaluates the changes in short-term market performance,financial performance and non-financial performance brought by the acquisition to "Alibaba".The short-term M&A performance is analyzed by the Event Study Methods,and the value of M&A to shareholders is evaluated by cumulative abnormal return(CAR).In terms of financial performance,financial index analysis method is selected to study the impact of M&A on enterprises.Non-financial performance analysis analyzes the development of enterprises before and after M&A from the perspective of "Alibaba" 's M&A motivation.Through analysis,this paper studies whether the M&A really brings the market performance and improves the business performance of enterprises,hoping to provide reference for the merger and acquisition of enterprises in the same industry in the future.The study found that the motivation of "Alibaba" to acquire "ele.me" was to promote the strategic layout of "“Alibaba”" new retail and gain a certain market share in the online catering market.The CAR,calculated by the event study methods,is less than zero and indicates that shareholders do not enjoy the positive benefits in the short term.Through the analysis of the financial index of "Alibaba",the profitability and short-term liquidity after the M&A are decreased,while the long-term liquidity is stable,the growth ability is good,and the operational capacity has a little decline.The analysis of non-financial index indicates that "Alibaba" has gained a certain share of online catering market through the M&A,accelerated its new retail layout and improved the logistics distribution system.Finally,this paper combined with this case provides suggestions for the M&A of relevant enterprises.