Research On Performance Evaluation Of PPTV Merger And Acquisition In Suning.cn

With the development of the Internet,new business models have emerged in the market to awaken new forms of business.China’s traditional retail enterprises,suffering from the impact of the Internet,have transformed and upgraded to find a new way out.M&A is an important way to realize the strategic transformation of enterprises,therefore,mergers and acquisitions and restructuring are becoming more and more common in the Internet retail industry.Among them,Suning Tesco is in the forefront of the industry by exploring the transformation of Internet retailing ahead of time.However,for the traditional retail industry,frequent corporate mergers and acquisitions do not mean successful mergers and acquisitions.The motivation for mergers and acquisitions of China’s traditional retail enterprises in moving towards the Internet wave,how to achieve the best acquisition target;whether the various aspects of mergers and acquisitions are smoothly connected with each other;and the post-merger performance integration work all need to be carefully weighed and deeply considered.In this paper,we study the performance evaluation of Suning Tesco’s M&A of PPTV,taking into account the current situation of the industry and the characteristics of the Internet in China.Starting from the current situation and characteristics of enterprises as well as the background and motivation of M&A,financial and non-financial indicators as well as EVA indicators are used to analyze and evaluate the M&A performance of enterprises to determine whether M&A can improve corporate performance,increase shareholder wealth and enhance corporate value,and discover problems in M&A,with the intention of providing favorable empirical insights for M&A of traditional retail enterprises in China.The study concludes that Suning.com’s M&A of PPTV has generally failed to meet expectations and even had a greater impact of negative effects.Although the M&A of PPTV is in line with the transformation of Suning Tesco’s strategic goal of diversification and achieving certain synergies,the M&A of PPTV has resulted in a decrease in Suning Tesco’s solvency,poor operational,profitability and development capabilities and consistently negative EVA indicators,a decrease in shareholder wealth,poor capital efficiency due to improper M&A integration,and a lack of ability to create value for the company.Therefore,for this M&A performance analysis and problems,the empirical insights for Suning Tesco M&A are drawn: reasonable valuation of M&A target enterprises,flexible selection of M&A payment methods,broadening of corporate financing channels,and realization of corporate synergy effects.The empirical insights extended from the results of Suning’s M&A of PPTV to the whole retail industry: realizing corporate development strategy is the premise of M&A,finding suitable target enterprises is the key to M&A,and focusing on post-merger integration is the focus of M&A.