Research On The Motivation And Performance Of Jifeng's Cross-border Acquisition Of Gramme

In the context of economic globalization,closer ties between countries,and domestic enterprises want to be in an advantageous position in the increasingly fierce competition,they must increase their core competitiveness.Cross border M&A is favored by Chinese enterprises.It can help enterprises quickly enter overseas markets,improve international popularity,increase global market share,learn advanced management experience,and improve product innovation capabilities.In response to the call of the state,we will accelerate the implementation of the "going out" strategy,acquire the technology,brand and other resources of the target enterprise through mergers and acquisitions to achieve high-quality development.However,it is unknown whether enterprises can improve their market competitiveness and corporate performance after M&A.This paper selects Jifeng Shares as the research object.First,it introduces the process of case acquisition and the means of payment,and then it issues the motivation of Jifeng Shares’ acquisition of Gramer.About performance analysis,it is mainly from three aspects: first,analysis the short-term performance of Jifeng’s M&A of Gramer by the event study method;Secondly,based on the synergy effect of M&A,analyze its financial performance;Third,based on the motivation of M&A,combined with non-financial indicators,it specifically analyzes market share,technological innovation and brand effect;Finally,according to the previous analysis,the paper summarizes and puts forward suggestions.Draw conclusions through analysis: first,the market reaction of Jifeng’s acquisition of Gramer is good,which short-term performance improved;Second,following the merger of Gramer by Feng,the improvement of financial performance is not obvious,and it needs a longer time for integration to gradually achieve synergy.Third,after the acquisition of Gramer by Jifeng,the market share,innovative R&D capability and brand influence have been promoted,and the initial motivation of Jifeng’s cross-border M&A has been basically realized.