A Case Study On The Failure Of Cross-border Premium Mergers And Acquisitions Of Traditional Enterprises

At present,the economic situation is complex and changeable,and mergers and acquisitions have become an important path for enterprises to expand and develop rapidly.In the past three years,China's M&A market has been extremely active.Both the number of mergers and acquisitions and the amount of transactions have grown rapidly.There are a variety of mergers and acquisitions.Cross-border mergers and acquisitions have become popular.Overseas mergers and acquisitions have reached a new high.,Become the most active buyer of cross-border mergers and acquisitions.However,behind this vigorous development,the shadow of M&A failure is still lingering,and the number of failure cases is gradually increasing.According to research by domestic and foreign research institutions,the failure rate of mergers and acquisitions is between 50%and 70%.The high failure rate is worth investigating.The original main business of Xiuqiang Co.,Ltd.was the deep processing of glass for home appliances and photovoltaic products.Since 2015,following the wave of mergers and acquisitions in the education industry by listed companies in the secondary market,the company has also begun to engage in the operation and management services of early childhood education entities.Newly established internally,transforming the two main businesses of glass deep processing and preschool education.Xiuqiang Co.,Ltd.hopes to enter the emerging preschool education industry through mergers and acquisitions,and use the development advantages of emerging industries to find new profit growth points for the company and realize the company's revival in the traditional industry market.However,judging from the results of mergers and acquisitions,in June 2019 Xiuqiang shares announced the sale of all education-related assets at a price of 280 million yuan,including full-person education purchased at 210 million yuan,and Jiangsu,which was purchased twice in a total of 214 million yuan.Tong Meng,Nanjing Xiuqiang with a registered capital of 100 million yuan,and Xuzhou Xiuqiang with a registered capital of 10 million yuan.The latter two subsidiaries have never been profitable since their establishment.The cumulative losses in the past two years have exceeded 50 million yuan.Not much,Xiuqiang's four-year investment in human and financial resources ended in failure.This article is based on the motivation of corporate mergers and acquisitions and the financial performance analysis after corporate mergers and acquisitions.It uses literature research methods and case study methods to study the actual cases.Through a financial analysis of the case of Xiuqiang 's share acquisition and early childhood education industry,this paper starts The reasons for the failure of cross-border mergers and acquisitions of strong shares are specifically analyzed,and a comprehensive study is carried out around the case.This article mainly explores the reasons and results of the Xiuqiang M&A preschool industry through case analysis,analyzes the reasons for the failure of this merger and acquisition,and analyzes the financial data to explore the reasons for the failure of the merger and acquisition from the perspective of financial performance analysis.Finally,through the analysis and summary of the reasons for the failure of M&A,some references and references for similar cases in the future M&A market are proposed.