Strategic Motivation And Performance Research Of Serial Acquisitions

In recent years,with the introduction of a series of policies,domestic M&A transactions have shown a rapid increase trend.In this context,many companies are beginning to adopt serial mergers and acquisitions to achieve their strategic objectives.SHINVA is a medical device production enterprise,and they adjusted their strategy in 2010,through serial acquisitions gradually become the domestic leading medical group.In the first few years of M&A,SHINVA extends Medical Device sector not only enriched the company's industrial line and business scope,but also brought positive financial effects,increasing the value of the enterprise.However,its financial performance turned sharply after 2013,even causing the group to lose money for two consecutive years,2016 and 2017.At this point,the company's management has to quickly take contingency measures to adjust the strategy,strengthen integration and prevent further losses.Thus,serial M&A can be "double-edged sword" for a company.Therefore,this article will be with the question whether serial M&A can improve the performance of the company,and if raised whether it will cause a sharp decrease.There will be three parts.The first part combs the research background and so on,and summarizes the existing research of scholars at domestic and foreign.Since the definition of serial M&A is not uniform,this paper clearly defines it as at least 5 M&A completed in 3 consecutive years between 2010 and 2017.The second part,combined with strategic theory,analyzes the strategic motivation of SHINVA's serial M&A.The third part analyzes the serial M&A integration strategy of SHINVA from four angles of strategy,culture,personnel and finance,and calculates the short-term and long-term performance respectively in combination with Market-Adjusted Returns Model and Factor Analysis.According to this,we can find that serial M&A should be carried out at a moderate pace under a reasonable strategy.Enterprises should strengthen their attention to the continued profitability of the underlying companies.Before M&A,companies should make rational use of valuation methods and scientifically set up performance commitments.After M&A,companies should strengthen the integration and realize the synergy effect.