Analysis Of The Motivation And Performance Of Shenzhen Inovance Technology Co.,Ltd’s Acquisition Of Shanghai Bst Electronic Co.,Ltd

With the rapid development of the elevator industry,the elevator accessories enterprises also ushered in the development.With the increase of customers’ demand for the integrated model,the development pattern of the elevator parts industry has also changed.The elevator accessory suppliers that provide personalized products for customers have begun to usher in a new development.In order to seize the development opportunities,M&A has become the optimal solution for the rapid development of enterprises.In this thesis,Huichuan Technology’s large acquisition of Shanghai Best is selected as a research case to analyze its motives and effects of mergers and acquisitions,providing reference for mergers and acquisitions of enterprises in the same industry.In terms of the research on the issuance motivation,this thesis finds that the main reasons for Huichuan Technology to choose to acquire Shanghai Best are the huge potential demand for elevator electrical supporting business,the synergistic effect obtained by the complementary advantages of various parties,and the good financial performance of the underlying assets.Specifically,in terms of the huge potential demand for elevator electrical supporting business,this thesis analyzes the demand for elevators from the aspects of real estate construction,old residential reconstruction,urbanization construction,etc.,and finds that the potential demand is huge;In terms of complementary advantages,this thesis believes that Huichuan Technology and Shanghai Best can complement each other in terms of products,customers,channels,etc.,to create synergy;In terms of the financial performance of the underlying assets,the operating income and net profit of Huichuan Technology maintained a good growth trend during the acquisition period.In the aspect of issuing effect,this thesis mainly discusses from three aspects: stock price effect analysis,synergy effect analysis and M&A performance analysis.In terms of stock price effect,this thesis analyzes the stock price effect of Huichuan Technology’s acquisition of Shanghai Best by using the event study method.The results show that this acquisition has brought significant positive excess return rate for Huichuan Technology.In terms of synergy,after analyzing the financial data before and after Huichuan Technology M&A,it is found that this M&A has achieved good synergy in terms of finance,operation and management,and many financial indicators have improved after the M&A;In terms of M&A performance analysis,this thesis selects the data of 20 enterprises in the industrial control equipment industry from 2018 to 2020 as samples,and scores and ranks the performance of enterprises in the industry through factor analysis.The results show that after the merger and acquisition of Huichuan Technology,the industry ranking has improved significantly,from 18 in 2019 to 6 in 2020.The overall performance improved significantly.Based on the above research results,this thesis believes that enterprises should choose the right time for M&A,reasonably select the target assets for M&A,attach importance to the play of synergy after M&A,and flexibly choose multiple payment methods to promote the successful M&A.