Study On The Performance Evaluation Of Related Mergers And Acquisitions Of H Company Under The Same Control

With the in-depth development of economic globalization,China’s economic development model is transitioning from the pursuit of high-speed development to the pursuit of high-quality development.However,with the economic downturn in recent years,reduced market demand and increasingly fierce market competition,enterprises have to adopt various means to enhance their comprehensive strength and core competitiveness in order to avoid being eliminated from the market.In this economic environment,mergers and acquisitions are widely used by listed companies as an important means to expand their scale,achieve industrial upgrading and carry out strategic transformation.In China,apart from mergers and acquisitions between unrelated enterprises,mergers and acquisitions also occur frequently between enterprises with related relationships.A connected M&A is a merger or acquisition between a listed company and its controlling shareholder or a subsidiary controlled by its controlling shareholder.Due to the special connection between the two sides of the transaction in a connected M&A,the change in the performance of the company after the M&A has gradually been paid attention to by academics,but no definite conclusion has been reached yet,so this dissertation uses the connected M&A behaviour of Company H as a case study for in-depth analysis.Based on synergy theory,economy of scale theory,market power theory and resource base theory,this dissertation analyses the motivation for the implementation of the affiliated M&A by Company H.It also evaluates the performance of the affiliated M&A by Company H in three dimensions: market response,financial performance and non-financial performance.The study found that: firstly,the M&A had a boosting effect on the share price and the short-term market reaction was positive;secondly,the financial performance of Company H improved after the connected M&A,as shown by enhanced profitability,increased debt servicing capacity,improved operating capacity and significantly enhanced growth capacity;thirdly,the non-financial performance of Company H improved after the connected M&A,as shown by enhanced R&D and innovation capacity,broadened business areas and product lines,achieved Thirdly,the non-financial performance of Company H has improved after the connected M&A,as evidenced by its enhanced R&D and innovation capabilities,broadened business areas and product lines,achieved diversified development,increased domestic market share and enhanced competitiveness.Overall,the associated M&A of Company H has generated positive performance,giving full play to the operational synergy,management synergy,financial synergy and quality resource acquisition effects.