Research On Merger And Acquisition Performance Of LB Company

Our country is in the high-speed stage of development,and more and more enterprises are facing more and more competitive pressures.And cross-industry competition is a common example,which shows that more and more enterprises are willing to choose diversified development strategy.Mergers and acquisitions will undoubtedly bring new profit growth points to enterprises,but also can expand the scale of production of enterprises,make the optimal allocation of resources to a new height,through mergers and acquisitions to achieve the purpose of improving competitiveness.Therefore,the choice of M&A is a shortcut for enterprises to explore the road of development,which has a great impact and significance on the enterprise itself and the industry as a whole.Firstly,this paper introduces the concept of M&A,the method of M&A performance and the payment method of M&A.Secondly,this paper combines the case of LB Company,and analyses the situation faced by the enterprises before the acquisition of AP Company and the financial indicators data in the enterprise statements.Then,the performance analysis is carried out for the acquisition of AP company.The results show that the M&A of LB company to AP company conforms to the strategic layout of diversified development of enterprises,and the short-term performance indicators of the M&A are good.However,the financial performance in 2017 and 2018 after M&A shows that the overall performance of the enterprises acquired in the previous year is not very good.According to this situation,this paper analyses the reasons and shortcomings,and finally puts forward some suggestions on the performance of M&A.