Research On The Motivation And Performance Of Putailai’s Continuous Mergers And Acquisitions

With the increasingly stringent environmental protection policies of countries around the world,the lithium battery industry,as one of the new energy industries,has also developed rapidly.However,due to the fact that China began to reduce subsidies for the new energy automobile industry in 2015,the barbaric development model of the domestic lithium battery industry soon encountered problems,and a large number of domestic lithium battery companies collapsed,and more than 50 power lithium battery companies collapsed in 2018 alone.In order to explore how lithium battery companies can achieve better development in today’s fierce competitive environment,this paper studies the case of continuous mergers and acquisitions of outstanding enterprises in the lithium battery industry based on the perspective of industrial chain extension,hoping to provide certain references and references for the development of current lithium battery companies.This paper first summarizes the concept of industrial chain extension,the concept,motivation and performance of continuous mergers and acquisitions and other relevant domestic and foreign literature,and then uses the case analysis method to conduct an in-depth analysis of the continuous mergers and acquisitions of Putailai,an excellent enterprise in the lithium battery industry.Based on the relevant theory of continuous mergers and acquisitions,the motivation of continuous mergers and acquisitions is introduced,and then through the event research method,financial index analysis and non-financial index analysis,the performance of Putailai continuous mergers and acquisitions and the impact of industrial chain extension are systematically analyzed,and the financial index analysis is added to the industry with high comparable company Betray for horizontal comparison.Finally,the conclusions and recommendations of this paper are drawn.The results of this paper found that the motives of Putailai’s M&A include the overall improvement of the external environment of the industry,the pursuit of synergy,the reduction of product costs,and the completion of the whole industry chain layout strategy.The continuous mergers and acquisitions of Putailai have obvious negative effects on the profitability and solvency of enterprises,but the company’s R&D capabilities and product unit cost control capabilities have been significantly improved.Through successive mergers and acquisitions,Putailai has significantly increased its market share in the field of diaphragm coating.Based on the above analysis,this paper puts forward the following suggestions for the continuous mergers and acquisitions of the lithium battery industry: first,in the continuous mergers and acquisitions should pay attention to the rapid growth of enterprise assets and debts,improve the corresponding management capabilities,reduce the adverse impact of rapid asset growth on profitability and solvency,secondly,the extension of the industrial chain through continuous mergers and acquisitions can well reduce production costs,improve technical capabilities to improve the competitiveness and operational capabilities of enterprises,and finally,When choosing a M&A field,it is easier to form synergies and grow rapidly by choosing areas that are related to their main business but have a small market share.This study provides theoretical guidance and reference significance for lithium battery enterprises to implement continuous mergers and acquisitions,and enriches the research related to continuous mergers and acquisitions.