Research On Diversified Strategic Merger And Acquisition And Its Performance Of Lingnan Holding Group

With the rapid development of economy and the constant change of market,state-owned enterprises are facing the pressure of reform.Mergers and acquisitions can create core competitiveness and achieve the development goals of strategic transformation.At present,Chinese acquisition activities are becoming more mature,and the scale of transactions continues to rise.In the process of enterprise acquisition,it is an important link to analyze the motivation of merger and acquisition and the performance after merger and acquisition,which will affect the success of the acquisition activities.This paper takes Lingnan Holding Group's diversification strategy acquisition case as the research object.Firstly,the concept and type of acquisition,motivation,effect theory and performance evaluation method are expounded theoretically.Secondly,it studies the industry background and company situation of both sides of acquisition,and analyses the motivation of acquisition.Then it reviews the related events of acquisition and discusses the risk of acquisition integration.Finally,it uses event study method,accounting index method,DuPont analysis method and economic value-added method to analyze the performance of acquisition.The results show that,firstly,in order to achieve strategic transformation,Lingnan Holding Group acquired Guangzhou Guangzhi International Travel Service Co.,Ltd.to improve the overall layout of the company in tourism and quickly enter the tourism industry.Secondly,in order to improve the brand awareness and influence,we purchase Garden Hotel and China Hotel,and integrate these two high-end hotels,so that the company has international management level and efficient operation level,and improve the core competitiveness of the hotel business sector.Third,build a complete online and offline platform,adopt the new mode of "Internet +" light assets operation,and form scale effect and improve profitability.The results show that after the completion of acquisition,Lingnan Holdings Group has realized diversification strategy,creating a coordinated development of hotel industry,tourism,catering industry,exhibition industry and automobile service industry.Through the event study method,it is concluded that the cumulative yield on the margin is declining as a whole,indicating that investors are not optimistic about the acquisition,thus lowering the expectation of the company's future stock value.Through the analysis of the profit contribution rate of the acquired party,it is concluded that the business income of Lingnan Hotel,Guangzhou Travel Hotel,Garden Hotel,China Hotel and Oriental Hotel has increased significantly after the asset restructuring,which indicates that the group has achieved a new economic growth point.Through the analysis of the profitability of the main merger according to industry and region,it is concluded that the business income of travel agency industry is the largest,and the business income of Guangdong province is the same as that of other provinces.Dupont analysis shows that both the net interest rate and the return rate of net assets have decreased,which indicates that the sales rate of the group's funds has decreased.The application of economic value-added method shows that the economic value-added tends to decrease.By studying the diversified acquisition events of Lingnan Holding Group,this paper explores the impact of diversified acquisition integration risks on acquisition performance,reminds other groups to take precautions against diversified risks when adopting diversified strategy for acquisition,and provides a basis for how to prevent diversified risks.