Evaluation Of CITIC Special Steel’s M&A Performance Based On EVA And BSC Models

In recent years,China’s manufacturing industry has continued to develop,especially machinery,automobiles,railroads and other new industries have gradually shown vigorous development momentum and broad development prospects.Special steel,as the most important steel for the above industries,is also an important symbol to measure whether the country can become a steel power,and the demand is also rising again and again.However,in the context of the overall development of the manufacturing industry to high quality,China’s steel industry still has bottlenecks that have not yet been broken,overcapacity,fierce competition in the same industry,high-end steel production has been a long-standing problem.In the face of market and environmental challenges,some steel companies have started to seek suitable transformation and upgrading paths to improve their competitiveness and sustainable development by integrating resources through M&A and restructuring.The purpose of this paper is to study the applicability of the performance evaluation model,analyze and evaluate the M&A results,and analyze the impact of this M&A activity on the industry through the M&A case of CITIC Special Steel.The significance of this paper is to explore in depth the impact of M&A activities on corporate performance and to provide some theoretical references for M&A activities in the same industry.This paper takes CITIC Special Steel’s M&A of Xing Cheng Special Steel as a case study and explores the application of EVA evaluation method and BSC evaluation method in the performance evaluation model.Firstly,the concepts of M&A,M&A motivation,EVA and BSC and related theoretical foundations are explained to lay the theoretical foundation for the subsequent study.Second,the EVA calculation indexes are adjusted by combining the corporate characteristics of CITIC Special Steel and the necessity and feasibility of combining EVA and BSC,and the EVA for three years before and after the M&A of CITIC Special Steel is calculated and analyzed in detail in order to obtain accurate performance data.Then,a comparative analysis of the corporate effectiveness of CITIC Special Steel before and after the M&A is conducted from the four aspects of BSC through graphical data,and the impact of all parties of this M&A activity is studied in depth.Finally,relevant issues and countermeasures are proposed in response to the analysis results.The study shows that CITIC Special Steel’s M&A activity has been highly effective in several aspects and has contributed significantly to the improvement of overall corporate performance.The M&A activity produced better operational synergy,financial synergy and management synergy,opened up the special steel market and laid a solid foundation for the improvement of corporate performance.The financial situation has been effectively improved and the business operation capacity has increased.Both the human resource structure and longterm development capability have been optimized,further enhancing the corporate performance performance.Therefore,the impact of this M&A activity on CITIC Special Steel’s corporate performance can be evaluated as positive.It is hoped that the above findings can provide some theoretical guidance and relevant basis for the proposed M&A restructuring in the steel industry.