Performance Research On Enterprise Continuous M&A

In recent years,China’s M&A market has culminated,and the number of mergers and acquisitions and the total amount of mergers and acquisitions have been rising.At the same time as the number of mergers and acquisitions continues to expand,the number of mergers and acquisitions that have been carried out by some companies over a period of time has also increased,and the phenomenon of serial M&A has continued to emerge.As one of the leaders in M&A in the aviation industry,HNA Holdings has continuously expanded its market share through serial M&A,acquired route resources,consolidated route hubs and enhanced competitiveness.However,too frequent mergers and acquisitions have prompted HNA Holdings to develop rapidly,but there are certain risks,such as the risk of capital chain breakage,the risk of merger and acquisition failure,etc.,then the performance of HNA Holdings’ serial M&A is also unknown.Therefore,this paper chooses HNA Holdings,a typical enterprise of serial M&A,as the research object,based on the previous research on M&A performance,studies and analyzes the long-term and short-term performance of continuous M&A.First of all,the merger and acquisition events of HNA Holdings from 2013 to 2017 were compiled.Based on the motivation theory of M&A,the three major drivers of HNA Holdings ’ serial M&A were analyzed.Secondly,through the event research method,the short-term performance of the company’s serial M&A is analyzed.It is concluded that each of HNA Holdings ’ M&A events has a significant impact on the company’s share price during the window period,while half of the M&A events during the observation period are in the short term.Internally,it has brought positive effects to the company.Half of the mergers and acquisitions have a negative effect on the accumulated wealth of the enterprises in the short term.Therefore,the overall results of the serial M&A conducted by HNA Holdings are effective.Thirdly,using financial analysis and EVA to study the long-term performance of serial M&A,the analysis of financial analysis shows that the long-term performance of serial M&A is unstable,and the company’s profitability has not been significantly improved.The role of HNA Holdings in the continuous merger is strong,and the long-term solvency is increasing,but the use of funds is wasteful,the efficiency of capital use can be improved;the operational capacity is strong,but the corresponding receivables Insufficient management efficiency.The EVA analysis shows that the serial M&A of HNA Holdings have created limited value for enterprises and have not reached their expected value,and the value created by serial M&A to enterprises has greater uncertainty.Finally,based on the research of the previous chapters,we draw conclusions,summarize the problems of HNA Holdings in the serial M&A,and then give rationalization suggestions for these problems.