Research On The Strategy And Economic Consequences Of Jifeng’s "Snake Swallowing Elephant" M&A Of Grammer

In recent years,with the continuous development of economy,enterprise M & A activities continue and the scale is also expanding.M & A has become an important means for enterprises to obtain market competitive advantage.In the whole M & a market,the M & A of "snake swallow elephant",a special M & a method with weaker enterprises as the main partners,is also increasing.However,vulnerable enterprises are facing great difficulties in obtaining advantageous enterprises.A little negligence may lead to the failure of M & A and even the company into a quagmire.The auto parts manufacturing industry in China and even the world is showing a trend of concentration,and large number of resources in the market are controlled by powerful companies.From the perspective of my country’s market distribution,Ningbo is a very important automobile center along the east coast of my country.In Ningbo,there are nearly 90 automobile companies that form an automobile industry cluster.At the same time,the Ningbo Municipal Government also issued the slogan to build a trillion-level automobile industry cluster in Ningbo.At present,China’s automobile production has been maintained at a level of about 25 million vehicles.With the development of automobile manufacturing,in the future,the market’s demand for auto parts will only continue to increase.This article studies the case of Ningbo Jifeng Auto Parts Co.,Ltd.(hereinafter referred to as “Jifeng”)acquiring German Grammer AG(hereinafter referred to as“Grammer”).The thesis first explains the research background,methods,and combs the related literature.Secondly,the article introduces related concepts and theories of mergers and acquisitions,related theories about mergers and acquisitions,and other theories that will be used in the thesis.Then,this article introduces the current situation of the auto parts industry,the company background and operating status of both parties to the merger,the merger process and the specific time node.Next,the article analyzes the motivations and strategies of mergers and acquisitions.When analyzing the motivations of corporate mergers and acquisitions,the article analyzes the motivations from the internal and external environments of the company.For the acquisition strategy,the thesis is divided into the acquisition of Grammer equity.And inject Grammer into the two parts of the company for analysis.The next analysis is to analyze the economic consequences of this merger.When analyzing the economic consequences,the analysis methods used in the article include the financial index method,the event research method,and the "snake swallowed elephant" M&A performance evaluation system.The last part of the thesis is to draw relevant conclusions and enlightenments.The article draws relevant conclusions through the analysis system: First,the internal objectives of the company’s merger and acquisition have basically been achieved.Through mergers and acquisitions,companies have significantly improved in terms of company growth,technological resources,and access to economies of scale.Second,the merger is a relatively successful merger on the whole,mainly because the company has conducted sufficient research on the merger company,cooperated with each other’s management friendly,and used a variety of financial tools and financing methods to successfully obtain Grammer’s success.Absolute control.Third,the capital market regards this merger as good news,which has created shareholder wealth.Finally,through mergers and acquisitions,companies have significantly improved their growth capabilities,operational capabilities,and the degree of nationalization.Although the solvency of companies has declined due to the large amount of resources consumed in early mergers and acquisitions,mergers and acquisitions have brought about With a larger market and resources,the company’s operating income has also increased significantly,and its debt solvency is still expected to improve in the future.However,from the follow-up development data,the overall management of the company is weak,and the resources that Grammer has brought to the company have not been effectively used.In the future,companies need to enhance their internal management capabilities.