A Study On The Transformation M&A Case Of Nanjing Xinjiekou Department Store Co.,Ltd.

With the advent of the Internet,Chinese traditional department store industries have been hit by e-commerce,and their performances have gradually declined.Therefore,many retail companies began to explore new strategies and develop new models.At the same time,the medical pension industries are about to lead to the development of the golden age.The state has repeatedly issued policies to encourage enterprises to develop the medical care model and provide relevant business support.In this context,Nanjing Xinbai chose to transform and develop into a dual-main business model of “modern business + medical care for the elderly”.Although M&A cases have been studied by many scholars,there are few case studies using continuous mergers and acquisitions to complete business transformation.This article explores how Nanjing Xinbai can transform through mergers and acquisitions through case study and accounting analysis.Therefore,the choice of this case is representative.This paper takes Nanjing Xinbai transformation and merger case as the research.The company has transformed the traditional department store into modern business through multiple mergers and acquisitions,and has entered the new field of medical health and old-age service industry.The transformation strategy has a long-term vision,but the whole process is completed in a short time.There are certain risks to the practice.First,this paper analyzes the research background,research significance and research status at home and abroad,to strengthen the research background of the article by arranging the research status of mergers and acquisitions motivation and M&A performance.Second,it introduces the relevant theoretical foundations,including the following: M&A motivation theory and M&A performance evaluation methods.Third,it introduces the company profile and the acquisition process,and divides its M&A process into three parts: transferring,expansion of main business transformation M&A and diversified transformation M&A,and then expands one by one.Fourth,it summarizes the motivations of M&A,including: e-commerce shock and horizontal competition,macro policy environment,strong alliance,diversified development and industrial chain integration.Fifth,focus on the performance of Nanjing Xinbai after the transition,and examine the performance of the company from two aspects: financial indicators and non-financial indicators.Among them,the financial indicator analysis method is mainly to analyze the company's profitability,solvency,operational ability and development capability.The analysis of non-financial indicators mainly discusses both strategic objectives and R&D innovation.Sixth,the analysis of its transformation risks mainly includes the following points: macro policy risk,high debt implied risk,goodwill bubble implied risk and cash payment risk.Finally,summarize and give suggestions: adhere to the "modern business" development,establish an internal control management system,formulate financial crisis response measures and improve the efficiency of resource integration.