Research On The Corporate Performance Of Cross-industry Continuous Merge And Acquisitions

At present,some traditional manufacturing enterprises in China are facing the problems of limited market capacity,backward production capacity,and serious product homogeneity,which restrict their further development.At the same time,the M&A market is in full swing,and more and more companies are trying to complete the transformation through cross-industry M&A.As the business models of different industries are completely different,companies' unfamiliarity with the operation methods of new industries increases the risk of mergers and acquisitions.Continuous mergers and acquisitions under the premise of cross-industry have further increased the risk.For the performance of cross-industry M&A and continuous M&A,the existing literature mostly adopts empirical research methods,but no unified conclusion is formed.The reason may be the difference in the scope of sample selection and performance measurement indicators.At the same time,there are relatively few case studies on cross-industry M&As.Aiming at the shortcomings of the existing literature,this thesis selects Qingdao Kingking as the research object,and explores the path that this company creates value through mergers and acquisitions from the micro perspective of individual cases.Starting in 2013,Qingdao Kingking successfully entered the emerging cosmetics industry from the traditional candle industry through successive mergers and acquisitions of multiple cosmetics companies.Combined with literature reading,this article first summarizes and analyzes relevant theories,then introduces the industry background and the history of Qingdao Kingking before and after the merger and acquisition,and then analyzes the motivations and implementation effects of mergers and acquisitions.This thesis finds that mergers and acquisitions have realized the reallocation of resources between different enterprises,which has helped Qingdao Kingking's leapfrog development in the cosmetics industry.At the same time,on the basis of continuous cross-industry mergers and acquisitions,Qingdao Kingking integrated and upgraded the cosmetics industry chain and implemented a whole industry chain strategy.The whole industry chain strategy promotes good cooperation and communication between the parties to the merger and acquisition,and produce synergistic effects,contribute to the improvement of corporate value.In the M&A performance evaluation section,this thesis uses the Event Study to measure the shortterm market response of each M&A event.It finds that continuous cross-industry mergers and acquisitions increase shareholder wealth.This thesis also evaluates the long-term performance of M&A based on financial indicators and economic valueadded indicators.Various indicators have improved significantly after M&A,which proves the effectiveness of Qingdao Kingking's cross-industry continuous M&A strategy.Finally,this thesis summarizes and refines the conclusions based on case analysis:(1)Continuous cross-industry mergers and acquisitions have improved Qingdao Kingking's corporate performance.(2)Continuous cross-industry mergers and acquisitions have achieved the layout of the whole industry chain.(3)Adopting a cautious M&A strategy is a necessary guarantee for successful M&A.The possible contributions of this thesis are:(1)enrich the relevant literature on continuous cross-industry mergers and acquisitions.(2)reveal the path of continuous cross-industry mergers and acquisitions to create value,and provide references for other companies trying to achieve business transformation through mergers and acquisitions.