| Many enterprises have achieved rapid development through M & A,continuous M & A.But what enterprises seek is not only the growth of sales,but also the longterm survival.Sustainable growth means that enterprises make full use of their financial resources to maintain growth at a reasonable rate.Sustainable growth management is conducive to the long-term development of enterprises.Therefore,it is worth studying how M & A affects the sustainable growth of enterprises and how it affects the sustainable growth.Under the strategy of consolidating traditional business and developing new energy,energy storage and other new businesses,ShenZhen Clou Electronics Co.,Ltd.continuously acquired and expanded its scale in 2014-2017,realizing the transformation from manufacturing enterprises to energy service providers.However,influenced by multiple factors such as unreasonable valuation of the target company,inadequate integration of M & A,poor management of cash flow,and changes in external environment,ShenZhen Clou Electronics Co.,Ltd.began to sell its subsidiaries in 2017.In 2018,ShenZhen Clou Electronics Co.,Ltd.’s operating performance significantly declined,and its controlling shareholders began to transfer shares of the company,which marks ShenZhen Clou Electronics Co.,Ltd.’s continuous M & A behavior.It didn’t bring sustainable growth to the company.This paper uses Higgins’s model to analyze the impact of continuous M & A behavior of ShenZhen Clou Electronics Co.,Ltd.on its sustainable growth,and finds that ShenZhen Clou Electronics Co.,Ltd.mainly has some problems,such as no significant improvement in profitability,too low efficiency of asset operation,excessive debt,mismatch between dividend policy and investment demand,etc.,which leads to continuous M & A of ShenZhen Clou Electronics Co.,Ltd.and fails to bring sustainable growth.Based on this,some suggestions are put forward to provide some reference for other enterprises’ sustainable growth at the same time of M&A. |
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