Analysis on the Motivation and Performance of Enterprise Snake Swallowing Elephant Mergers and Acquisitions: Taking Nanling Civil Explosion Acquisition of Explosive as an Example

Abstract

As the invisible cornerstone of the national economy, the civil explosive industry has faced problems such as overcapacity and fierce competition while it continues to develop. Therefore, this paper studies the motivation of snake swallowing elephant mergers and acquisitions (M&A) in the civil explosive industry and the impact of M&A on performance. Taking Nanling Civil Explosion's acquisition of Explosive as an example, this paper selects financial data of the past five years and adopts literature research method, case study method, event study method and AMPS model to analyze the motivation of M&A, market reaction after M&A and changes of financial indicators. The study found that the merger improved the market performance of the enterprise, enhanced the profitability, solvency, operating capacity and growth capacity, and promoted the technical and financial innovation of the civil explosive industry, which is of great significance to the development of the entire civil explosive industry. Reasonable merger and acquisition and resource integration will help the long-term development of the enterprise, and will bring more opportunities and challenges for the enterprise. This paper provides some reference value for the snake swallowing elephant type M&A in this industry in theory and practice.