Case Study On Value Creation In Serial Mergers And Acquisitions Of SATURDAY Co.,Ltd

Clothing industry is a traditional advantageous industry in China’s national economy and has strong international competitiveness.It is a pillar industry in China’s coastal areas.Footwear industry is also an important part of the clothing industry.Affected by the bottleneck of industry development,the inclination of national policies,systemic risks and other factors,the rapid development of the industry is difficult to maintain.In addition,the rapid penetration of the Internet economy and e-commerce platforms has impacted Saturday Co.,Ltd.(abbreviation:Saturday)continuously,which was mainly engaged in the offline chain stores of the shoe industry.The strategic transformation of Saturday has been accumulating since 2015.The strategy of "building a fashion IP ecosystem" was proposed in 2016.In the following two years,Saturday had acquired three Internet companies and focused on the Internet industry.The thesis was mainly based on case analysis as research methods,and took the Saturday company series of M&A as the research object.To discuss the two major issues of "whether M&A brings value creation" and "how to create value".The paper first sorted out the industry characteristics of both parties of the merger and acquisition;for the company background of the acquirer Saturday,the acquired parties Beijing Fashion Fengxun Information Technology Co.,Ltd.(abbreviation: Fashion Fengxun)and Information Technology Co.,Ltd.(abbreviation:Beijing Shixin)and Hangzhou Yaowang Network Technology Co.,Ltd.(abbreviation:Yaowang Network)background,as well as its transaction plan,merger and acquisition process,etc.Secondly,from the combining perspective of theory and practice,to discusses "how to create value in M&A" it analyzed the value creation of the Saturday series of M&A,from the perspective of M&A motivation,the perspective of enterprise management.Thirdly,to discuss "whether M&A brings value creation" it had explored the performance of value creation in financial performance,from the financial report;had used the Free Cash Flow model and the Black-Scholes Option Pricing model to evaluate the value-added of the real part value and the potential option value part of the Saturday company’s merger before and after.Finally,through the above analysis,the enlightenment of value creation was mainly extracted from the following aspects,including the enlightenment brought by Saturday on the layout in the early stage,the payment method and control of M&A price,and the integration of resources after M&A.Based on the company’s valuation data,it puts forward reference in terms of internal management,financing channels and investment time.And draw lessons from the external supervision.Hoping to bring some thoughts on the value creation of other companies’ M&A.