Study On The Motivation And Performance Of Kingsun Share In Cross-border M&A Of Private Education And Trainning Institutions

In recent years,with the slowdown of China's economic growth and the transformation of industrial economic structure,some traditional industry markets are facing severe challenges.Enterprises urgently need to find breakthroughs to transform and seek new profit growth points.Listed companies in the traditional industry have transformed themselves into emerging industries through diversified mergers and acquisitions,and actively explore new markets to improve their business structure.In order to improve the performance and market value of enterprises,many companies choose to achieve cross-industry transformation by acquiring new industries.On the other hand,in 2016,the state issued a new version of the “Private Education Promotion Law” to support the development of the education industry and upgrade the development of the education industry to a new level of national development strategy.China's policy for the education industry is prosperous.Therefore,more and more traditional enterprises are trying to merge with the education industry with great development potential to realize their diversified transformation and development.This paper selects the cases of diligent acquisition of private education and trainning institutions by Kingsun,and uses the analysis method of the related theoretical knowledge and case of M&A.In the theoretical part,this paper reviews a large number of related literatures at home and abroad.On this basis,it summarizes the concepts and characteristics of cross-industry M&A,and sorts out the main motivations and performance evaluation methods of cross-industry mergers and acquisitions.In the case analysis section,this article selects the case of Kingsun shares acquisition of Guangzhou Longwen and British education.This paper first analyzes the development status of private education and trainning institutions acquisition in China,and makes a statistical analysis of the cross-industry M&A private education and trainning institutions of China's A-share listed companies and forecasts the future development prospects.Secondly,the series of M&A motivations are analyzed by means of PEST analysis and SWOT analysis.Then,from the aspectsof profitability,growth ability,operational ability,solvency and economic added value,it analyzes the financial performance of Kingsun Cross-industry M&A.Through research,it was found that in the year of completion of the merger,the EVA value and the capital turnover rate of Kingsun were down sharply.The main reason was that M&A used a lot of money,and the overall market downturn of LED industry and private education and trainning institutions did not create value for the company.After that,the author gave an analysis of the case and proposed the relevant countermeasures to promote the cross-industry M&A private education and trainning institutions of A-share listed companies.Finally,the research conclusions were summarized and the limitations of the article research were discussed.This paper aims to objectively analyze the whole process and influence of M&A,focusing on the case of diligent M&A private education and trainning institutions,and further analyze the motivation and performance of Kingsun M&A,in addition to the cross-industry M&A of traditional industries.The analysis of the effect of private education and trainning institutions puts forward new understandings and suggestions,and has certain enlightenment and reference significance for the cross-industry M&A private education and trainning institutions of traditional industries.