Research On Financial Performance Evaluation Of Continuous M&A In Traditional Garment Industry

After experiencing rapid development for decades,Chinese traditional clothing industry has experienced a slowdown in development growth.This is mainly due to the fact that overseas apparel companies have entered the domestic market to seize the market,their own management is poor,and their misunderstanding of consumer trends.For many reasons,the traditional business model of the apparel industry has obviously been difficult to adapt to this market.Enterprises can only choose to change their own development model and choose to diversify to survive.In this context,it is obviously important to study the continuous merger and acquisition process of HEILAN Home.This will help to enrich the theoretical system of continuous mergers and acquisitions and extend its research range,while providing reference for the transformation of other enterprises.First of all,this paper defines the concept of continuous mergers and acquisitions and analyzes the motivation theory,and introduces the theory of continuous merger financial performance evaluation.Secondly,through the combination of the actual situation of the continuous merger and acquisition of HEILAN Home,a complete financial performance evaluation system is constructed,and the event research method and financial index method are selected as the short-term financial performance evaluation methods,and the economic value added method and the entropy method are selected.As a long-term financial performance evaluation method.Then analyze the case of HEILAN Home,introduce its continuous merger and acquisition process and analyze its motivation.Then based on the constructed financial performance evaluation system,the short-term and long-term financial performance of HEILAN Home was evaluated,and the possible problems in the continuous merger and acquisition process were pointed out.The results of this paper show that in the short-term,the short-term M&A performance of HEILAN Home is generally good,and half of the M&A events have brought good market performance to HEILAN Home.In addition to operational capabilities,solvency and profitability.Both ability and growth ability have been effectively improved.In the long run,although the economic value added is positive for five consecutive years,but the overall downward trend and the use of the entropy method to find that the continuous merger and acquisition comprehensive scores continue to decline,it can be considered that this continuous merger did not improve the long-term performance of HEILAN home.In the process of mergers and acquisitions,there may be problems such as large integration risks,inconspicuous integration of advantageous resources,unresolved inventory problems,and large span of M&A industry.After theoretical analysis and case studies on its continuous mergers and acquisitions,this paper proposes policy recommendations from the corporate and government levels.I hope this paper can provide reference for the transformation of other enterprises.I hope that the evaluation system constructed in this paper can be applied to more fields,and I hope to observe whether the synergy between the two parties is realized in a longer period of time.