Study On The Performance Of "Snake Swallowing Elephant" M&A Of Listed Companies

With the increasingly close international trade,more and more Chinese enterprises go abroad to compete in the market and seek long-term development,mergers and acquisitions has become one of the main ways.The development of merger and acquisition has a history of more than 100 years,and a variety of merger and acquisition types have emerged,such as the increasingly hot "snake swallowing elephant" merger and acquisition in the merger and acquisition market in recent years,"snake swallowing elephant" merger and acquisition mainly refers to a special M&A mode contrary to the previous "strong gobble up weak",the acquiree is often stronger than the main acquirer in terms of development history and brand awareness.Its emergence mainly benefits from the continuous standardization and development of the market economy,The financing methods of enterprises are gradually diversified,which makes it possible for them to leverage large M&A projects.Looking back on the "snake swallowing elephant" mergers and acquisitions in recent years,some enterprises ended up perfectly,while many enterprises buried mines,which brought pressure to the subsequent development.Based on this background,this paper collects and collates relevant theories and literature,and takes Wingtech Technology’s merger with Anshi Semiconductor as a case study,the event study method,balanced scorecard and moat theory are used to analyze the case company’s performance before and after the event,not only from the long and short term,but also from the inside and outside,the purpose is to explore the impact of "snake swallowing elephant" M&A on enterprise performance.By analyzing the background of M&A events,combing the process of M&A,and comparing the performance before and after the event,this paper draws the following conclusions:(1)In the long run,the performance indicators of Wingtech Technology after merger are relatively flat compared with those before merger;(2)Affected by customer dependence,single profitable business and huge goodwill,Wingtech Technology has a long way to go to prevent business risks;(3)Compared with the relevant research and development data before and after the merger,the improvement of the research and development ability of Wingtech Technology is not obvious;(4)As a transnational merger and acquisition,the integration of "soft power" of Wingtech Technology still needs attention.In view of the above problems,this paper puts forward some suggestions for Wingtech Technology: open source and reduce expenditure "double pipe" under it,improve enterprise financial performance;prevent business risks from customers,channel layout,information disclosure and other aspects;from the R & D strategy,R & D personnel training,R & D organization system and other aspects to build a firm dike;attaching importance to the integration of culture and cognition will go a long way.Finally,the case analysis is summarized as follows: enterprises should carefully select the target and scientific valuation before the "snake swallowing elephant" M&A;in the merger and acquisition to keep information smooth,do a good job of capital planning;after the merger and acquisition activities,do a good job of integration,and give consideration to both "soft" and "hard",hoping to provide a reference for the intention of "snake swallowing elephant" type of merger and acquisition enterprises.