Comparative Analysis Of The Performance Of Jahwa Before And After Its Acquisition By Ping An

At present,China's economic development has entered a new normal.Under the multiple pressures of economic restructuring and industrial upgrading,it is of vital importance to enable finance contribute to development of enterprises.As an important capital tool to optimize resource allocation,merger and acquisition plays an important role in the context of industrial restructuring and the transformation of old and new momentum.Financial enterprises can directly help the development of real economy by merging and acquiring real enterprises and transferring capital,talent,channels and other advantages to real enterprises.This paper studies the motivation,integration process and performance of mergers and acquisitions of Ping An acquiring Jahwa,excavates the potential risks of industrial capital and financial capital in the process of merger,and further gives risk prevention countermeasures,which can provide reference for similar mergers and acquisitions in the future.Starting from the existing research results,this paper combs the related theories of M&A motivation and M&A performance to provide theoretical support for the next research.On this basis,the paper introduces the basic situation of Ping An,the acquired party and Shanghai nationalization,as well as the process of acquisition and integration.At the same time,from the internal and external dimensions,this paper analyses the motives of mergers and acquisitions of both sides,and finds that gaining investment income,realizing diversified operation,reducing the risk of mismatch between assets and liabilities and the promotion of good government policies are the main reasons for China's peaceful acquisition of Shanghai nationalization,while improving the competitiveness of the industry and seeking institutional transformation are the main reasons for Shanghai nationalization to sell its shares urgently.Then,the performance of Shanghai nationalization before and after acquisition is analyzed in two dimensions: financial and non-financial,and horizontal comparison with listed companies in the same industry.Longitudinal comparative analysis results show that after acquisition,the human resource efficiency,scientific research innovation ability and debt-paying ability of Jahwa have been improved,while the profitability,operational ability and market share have declined.Horizontal comparative analysis shows that Jahwa's short-term M&A performance is better,but in the medium and long term,its performance is worse.Finally,based on the results of the analysis,the paper gives some suggestions for Shanghai Nationalization to do a good job of evaluation before acquisition and to guard against integration risks after acquisition: in the aspect of pre-acquisition evaluation,we should fully understand the acquisition motivation of the acquisition party;in the aspect of preventing integration risks,we should focus on the specific responsibilities of the board of directors.Rules clearly stipulate to prevent internal control struggle.In addition,we can learn from the case that in the merger and acquisition of financial enterprises and real enterprises,enterprises can reduce financial risks.Furthermore,there are essential conflicts between the inherent interests of financial enterprises and real enterprises,and financial enterprises lack industrial genes.