Research On The Motivation And Performance Of Ruyi Group’s Overseas M & A

In recent years,the development of garment manufacturing industry has become the focus of national and government attention,and a series of laws have been formulated to protect its development.As a new force,private garment enterprises have accelerated the pace of "going global".More and more Chinese enterprises are actively promoting the international business management mode.Shandong Ruyi group,in order to obtain high-quality resources in a short period of time,takes a global perspective,realizes the optimal allocation of capital,develops new markets overseas,and selects overseas M & A.Shandong Ruyi group’s M & A of France SMCP group is one of the typical cases of cross-border M & A of garment enterprises.Its motivation and performance are worth studying.In this paper,Shandong Ruyi group is selected as the research case.In October 2016,the company acquired France SMCP group with 5 billion yuan,which is the largest cross-border M & a transaction in China’s clothing industry so far.In this paper,literature research method is used to clarify the motivation of this M & A;event research method is used to analyze its market performance;financial index analysis method is used to horizontally analyze the performance before and after cross-border M & A;combined with non-financial indicators as a supplement to financial indicators,the specific analysis of Shandong Ruyi Group ’s clothing design,production and processing,and R & D;finally,the world textile and clothing standards are summarized and analyzed The formation of the Bureau and suggestions for the future cross-border M & A of China’s garment enterprises.Through the research,we find that,firstly,we describe the background of M & A cases from the aspects of the development of China’s clothing industry,business expansion,product design and R & D,and the promotion of clothing brand value;secondly,in the process of describing the M & a event,we start from the acquirer to study the motivation of the implementation of the M & A activity;we focus on the analysis of the synergy between the enterprises of both sides In terms of financial performance,the M & A has improved the development ability and brand value of Ruyi group as a whole.In terms of non-financial aspects,the design and R & D,production and manufacturing,and brand value of clothing have been improved.At last,the paper summarizes the Enlightenment of Shandong Ruyi group to other enterprises.This M & a successfully creates value for Ruyi group’s investors,and hopes to provide useful enlightenment for China’s apparel enterprises to implement overseas M & A in the future.