Performance Analysis Of Vtron Group Co.,Ltd. Merger And Acquisition Of Hoing Education

During the 12 th Five-Year Plan period,Chinese economy entered a new normal.Many traditional industries have excess capacity and insufficient resource utilization,so deleveraging,making full use of resources and adjusting the economic structure are the strategic choices of many enterprises.Computer and equipment manufacturing industry is one of the traditional industries.Influenced by the slow recovery of national macro-economy and industry market,it has also begun to seek new profit growth points and open a diversified business model.Merger and acquisition is one of the choices that can quickly enhance their own strength and seize market share.If horizontal mergers and acquisitions,it can reduce competitors and expand market share in the industry;if vertical mergers and acquisitions,it can reduce a large number of costs and speed up the process of integrated services;if mixed mergers and acquisitions,it can disperse business risks and seek new profit growth points.However,how such M&A events can improve the performance of M&A enterprises(market performance and financial performance)is a challenge faced by many enterprises.Vtron Group Co.,Ltd is the leader of the electronic large screen Market in China.It was officially listed in 2009.Facing the impact of Chinese macro-economy,the market share has declined and the competition is fierce.It has also begun to change its business model,extend its business chain and create a second-pole business.On February 4th,2015,Vtron Group Co.,Ltd announced the merger and acquisition of Hoing Education into the preschool education industry.In this case,we will make a concrete analysis on the motivation,risk and positive impact of cross-bank M&A of Vtron Group Co.,Ltd.This case is mainly written in five parts,the first part is the introduction part,which mainly elaborates the purpose and significance of the research,research methods and contents,research status at home and abroad and the whole framework of the article,and finally elaborates the contribution of this article;the second part is to explain the overview of enterprise merger and acquisition,the theoretical basis and methods,including the related concepts of enterprise merger and acquisition,and the theory of merger and acquisition.The third part is the analysis of M&A cases.It briefly introduces the two sides of M&A(Vtron Group Co.,Ltd and Hoing Education)and the process of M&A,and carries out motivation analysis combined with theory.The fourth part focuses on the emergence of the M&A transaction of Vtron Group Co.,Ltd..The performance of M&A is analyzed quantitatively and qualitatively,the short-term market performance is analyzed by event study method,whether M&A has a positive effect on M&A parties is analyzed by factor analysis,financial index method and EVA method,and compared with the average level of the industry.The fifth part is the conclusion and Enlightenment of this paper.The conclusion of this case is that the merger and acquisition of Vtron Group Co.,Ltd can have a positive impact on its performance,which is worthy of our reference.According to the development of the industry and its own characteristics,enterprises should formulate clear and definite strategic M&A objectives,and pay attention to the integration of all aspects of enterprises after M&A,which is the key to the success of M&A.