Research On The Motivation And Performance Of Suning Tesco’s Diversified Mergers And Acquisitions

With the rocketing progress of the domestic market economy and the advent of the Internet era,traditional industries facing the main business market saturation,and competition in the same industry is fierce.In order to develop,it began to seek the way to get rid of the predicament,and the mergers and acquisitions are more choices.Among them,companies that use diversified mergers and acquisitions are not in a small number.The current study of diversified mergers and acquisitions is more focused on empirical analysis,and less research on the case.As a representative enterprise in our country’s Internet retail service industry,Suning chooses business expansion in the process of enterprise development,but can diversified M & A strategies to bring new profit growth points to companies to improve corporate integration? These are all aimed herein.This paper analyzes the mergers and acquisitions in Suning near 10 years from a diversified perspective.First,the theoretical elaboration of diversified mergers and acquisitions,according to cognate study at home and abroad,clear research objects and research content,based on this,on the basis of different types of multi-mergers and acquisitions,related typical mergers and acquisitions,regardless of diversified case objects Choose PPTV,International Milan Club,Tiantian Express Company,related diversified case subjects,red children’s Co.,Ltd.,Wanda Department Store Co.,Ltd.Its long short-term performance,as well as analyzing the influence of non-financial performance in industrial layout,market forces,and finally derived the conclusions and recommendations of this paper in accordance with specific analysis.The results show that Suning’s diversified mergers and acquisition strategy is not very successful,there is a phenomenon that is blindly diversified in order to industrial layout,there is no significant improvement of enterprise competitiveness,and the reason for the failure of Suning is:(1)M & A object is not properly selected,power Too thin;(2)Frequent cash payment method,corporate cash flow is tight;(3)M & A valuation method is not proper,bringing a lot of mergers and acquisition premiums;(4)There is no good integration in the later period of M & A,bringing financial risks.Therefore,this paper gives the suggestion of Suning Enterprises in the diversified M & A process:(1)In the process of mergers,integrated internal and external factors,select the appropriate M & A object;(2)combine itself,select Suitable payment method;(3)attach importance to evaluation,reasonably control the merger premium;(4)Pay attention to the integration of the backpoint of M & A.This paper adopts the in-depth study of the Suning diversified M & A process,hoping to provide a certain inspiration and experience of other companies that are working or future plans to make diversified mergers and acquisitions.