Performance Analysis On Listed Companies Buying NEEQ Companies

Mergers and acquisitions are one of the main forms of capital allocation in the capital market.Companies benefit from effective mergers and acquisitions because of the synergy effects and industrial integration it brings about.As a supplement for capital market,the initial intention of National Equities Exchange and Quotations(NEEQ)is to provide easy access to financing for innovative,entrepreneurial and growing small and medium-sized enterprises.In recent years NEEQ has seen increasing M&A cases.Especially for listed companies,NEEQ market has become an extremely important M&A pool.However,studies on the performance of listed companies which merge and acquire NEEQ market companies are scarce.And the published ones cover hardly all aspects.The reasons mentioned above considered,this paper focuses on the topic of listed companies merging and acquiring NEEQ companies.And we choose software information services industry as our research object which is the most common type of M&A cases in NEEQ market.Firstly,this essay introduces the relative concepts and evaluation approaches of M&A performance,and summarizes the papers in related field.Then the paper depicts the present situation and characteristics of M&A cases in NEEQ and why it becomes so popular.In addition,we commit an industrial research on the cases which happened during 2014 and 2018.Furthermore,to study the performance of M&A in NEEQ comprehensively,based on the case of GRG banking equipment Company acquiring AEBELL technology company,we analyze the motivation and performance from the aspects of market,finance and operation.Then we come to the following conclusions.From the angle of market,M&A did harm to GRG because investors were pessimistic about the decision.From the angle of finance,the performance of GRG decreased at first but turned to increase as the integration of resources went on.And from the angle of operation,M&A of AEBELL brought GRG advanced technologies and hence increased its performance.Finally,with the conclusion of the industrial study and the GRG case,this paper gives following suggestions.First,M&A in NEEQ should be encouraged and information disclosure system should be strengthened.Second,enterprises should make clear strategies and avoid blind M&A.Third,to keep a steady development,corporations should focus more attention on the integration of resources after M&A.