A Case Study On The Motivation And Financial Performance Of H Group’s Cross-industry Mergers And Acquisitions

Based on the representative and reference case of H company’s merger with S company,this paper USES case studies and quantitative and qualitative analysis methods to comprehensively sort out the progress of cross-industry mergers and acquisitions,such as the motivation and performance.Firstly,this paper introduces the research knowledge and operation paradigm of coherence discipline,and summarizes the actual situation of cross-industry merger and acquisition.In addition,the four dimensions of enterprise development are analyzed.From the perspective of development,H company expects to diversify its business to diversify its business risks.From the perspective of operation,the advantage of m&a is that it can upgrade the existing business structure,create a new type of business relationship,and construct the new media and new type of business driving pattern relationship at the core of buffalo milk business.In terms of profits,it is an important prerequisite for market mergers and acquisitions to absorb all kinds of high-quality resources into the company through the play of channel advantages and explore new profit growth points.In terms of market development,if the market value of the company is underestimated before the merger,the merger behavior can make the market see the advantages of the company itself,which is a strong positive signal and can let investors see the development potential of the company,which is conducive to attracting more investors to pay attention to the development of the company,and is an important way to improve the market value.Furthermore,the analysis on the performance of m & a shows that the crossindustry m & a of S company makes the performance of H company increase significantly in the short term,but not significantly in the long term.After analyzing the process of H company’s acquisition of S company,this paper believes that this is the result of the increased development pressure and the demand for strategic transformation of the former company.However,when the acquisition target was set at the early stage,due to the strategic advance and unknown investigation,the valuation of S company was characterized by improper direction and poor earnings quality.Seriously overestimated the market value and goodwill of S company.Thus,it can be seen that only short-term performance growth is emphasized,and the synergies after merger and acquisition are not well played,which ultimately damages the equity of H company and its shareholders.The purpose of this study is to explore the root causes of the failure of merger and acquisition of H company through this case,summarize the ways that listed companies should adopt to determine the target of merger and acquisition,find the integration road of crossindustry merger and acquisition,and put forward Suggestions for similar merger and acquisition cases of listed companies in the future.