Research On The Motivation And Performance Of XG Education Group's Continuous Mergers And Acquisitions Based On The Balanced Scorecar

With the implementation of the Regulations on the Implementation of the Non-state Education Promotion Law,the uncertainty of outreach mergers and acquisitions of private higher education has been eliminated.The wave of mergers and acquisitions of private education groups will only increase.Many private higher education companies chose to go public in Hong Kong to obtain a large amount of funds to promote continuous mergers and acquisitions,resulting in a rapid expansion in the overall scale of M&A — a rapid increase in the number of schools acquired and students in the schools.As of 2022,there are 7 private higher education companies listed on the Hong Kong stock market.According to incomplete statistics from Securities Daily,the compound growth rate of industry revenue from 2016 to 2021 will be about 20%-35%,and the compound growth rate of profit will be about 30%.-38%.As an asset-heavy industry,the return on net assets of private higher education companies is generally at the level of 15%-21%,and the average net profit rate is about40%.This thesis takes the 2017-2021 continuous merger and acquisition case of Hong Kong listed company XG Education Group as a research sample,and uses the relevant data of the group from 2016 to 2022 as the research basis to study the motivation and performance of XG Education Group’s continuous mergers and acquisitions.The research mainly uses the synergy theory to analyze the group’s continuous M&A motivation from the three aspects of finance,operation and management,finding it hopes to become bigger,stronger and better to achieve a high level of coordination in finance,operation and management and to achieve high-quality sustainable development through continuous mergers and acquisitions.Subsequently,the balanced scorecard was introduced and improved according to the characteristics of the industry and the performance evaluation needs of the group,and a five-dimensional continuous M&A performance evaluation index system for XG Education Group was established.Based on this system,the index data is analyzed and the comprehensive score of the group’s continuous M&A performance is calculated using the entropy method.The conclusions obtained by the two are basically the same: the continuous mergers and acquisitions of the group have positive effects on the indicators of the five dimensions of finance,internal processes,customers,learning and growth and social contribution/responsibility.The degree of impact is slow in the early stage-accelerated in the middle stage-stable growth at a higher level in the later stage.Through continuous mergers and acquisitions,the group has strengthened its integrated management capabilities,improved its core competitiveness,achieved economies of scale through synergy in finance,operations and management,and achieved good performance in mergers and acquisitions.The study also conducted a comparative analysis of the success and failure cases of XG Education Group’s continuous mergers and acquisitions,and concluded that the continuous mergers and acquisitions of enterprises should pay attention to motivation,ability,internal and external conditions,and fully consider the merger and acquisition strategy and corporate strategy,merger and acquisition target selection,due diligence,and integration mode,financial risk,capital security and other key elements.It is hoped that the effective,reliable,and feasible performance evaluation of XG Group’s continuous mergers and acquisitions can be effectively solved,and it can provide scientific and reliable basis for the subsequent group’s continuous mergers and acquisitions business development and strategy formulation and decision-making,and provide relevant reference for private colleges and universities that want to carry out continuous mergers and acquisitions.In terms of performance evaluation methods,it is expected to provide new evaluation ideas and index system basic templates for the performance evaluation of private colleges and universities,and improve the applicability and effectiveness of their performance evaluation.