On Performance Of Shandong Ruyi Overseas Acquisition SMCP Group

In recent years,with the promotion of the national “the Belt and Road” and “Go Global” policies,the number of overseas mergers and acquisitions(M&A)and the amount of transactions in China have been rising.With the transformation of enterprises,the difference between current and previous overseas M&A is that enterprises are no longer limited to M&A of tangible assets and pay more attention to the value of intangible assets now,such as brands and technologies.However,a large number of overseas M&A have been failed,and the complexity of overseas M&A has not led to the improvement of many corporate performances by M&A.Therefore,this paper selects a representative enterprise in the textile and garment industry to analyze.It focuses on the detail of measures taken during overseas M&A as well as the impact of M&A on corporate performance.It also explores the effect of enterprises' complete industrial chain layout through overseas M&A to provide advice for enterprises in China's textile and garment industry about overseas M&A.In order to understand the current situation of China's overseas M&A deeply and come up with some practical suggestions,this paper takes the 2016 Shandong Ruyi overseas M&A SMCP Group as the subject,and uses case analysis as the method to analyze performance.Firstly,this paper illustrates the research background and significance,and sorts out the domestic and foreign literatures on the causes of overseas M&A,the factors affecting overseas M&A performance and the overseas M&A performance evaluation methods.Secondly,it introduces the basic theories of M&A,the choice of target companies,the content and mode of M&A integration,and the M&A performance evaluation methods in detail.Thirdly,it analyzes the motivations,process,integration strategy and performance of enterprise overseas M&A.As for the performance,the event study is used for the short-term market reaction of the enterprise.The paper also analyzes the performance of both before and after the merger on the profitability,operation ability,solvency and growth ability of the enterprise through the financial indicator method.Using this method,it not only the vertical aspect of the company is compared,but also horizontally compared with the industry level.In addition,the non-financial indicator method is used to analyze the business structure and brand effect of the company for comprehensive measure on the impact of M&A on business development.Thus,these above methods evaluate the target company's overseas M&A performance and enhance the persuasiveness of the data.Finally,the enlightenment and conclusions are obtained for the case of Shandong Ruyi's overseas M&A.In conclusion,first,the company's overseas M&A achieve the company's strategic goals.Second,the company's overseas M&A have increased the profitability.Third,the company M&A have increased the market competitiveness of enterprises.Fourth,the company M&A integration strategy has achieved positive results.The innovation of this paper is to follow the current events and hot spot closely,in term of the vertical merger and take the brand as the object to analyze the M&A performance.It enriches the literature in related fields and help the overseas M&A of enterprises make better acquisitions.