Author(s)

Shuaihang Yi ¹, Jiaying Shi ¹

Affiliation(s)

¹ School of Economics and Management, Yunnan Normal University, Kunming, China

Corresponding Author

Jiaying Shi

ABSTRACT

The research at hand offers a thorough scrutiny of the consecutive mergers and acquisitions (M&As) undertaken by Huamao Logistics from 2014 to 2021, delving into the strategic impetuses propelling these transactions as well as their subsequent impact on market behaviour and financial outcomes. Initially, the paper revisits the notion of consecutive M&As along with the advancement of pertinent scholarly inquiries, prior to conducting a meticulous examination of the M&A chronicle of Huamao Logistics and the motivations thereof. Utilising the event study technique, the research delves into the ramifications of how such M&As, when in alignment with the overarching corporate strategy, influence organisational efficacy, whilst concurrently assessing how these M&As fortify the entity’s fundamental competitive edge through a synthesis of financial scrutiny and DuPont analysis. The findings suggest that the market generally acknowledges Huamao Logistics' approach to consecutive M&As, particularly those transactions that engender synergistic effects, thereby effectively reinforcing the enterprise's essential competitiveness through these strategic moves. Culminating the study is a compendium of pragmatic suggestions concerning the appraisal of M&A prospects, risk mitigation, capital structure refinement, integration scheming, and strategic blueprinting, thereby enriching the academic discourse on consecutive M&As and furnishing corporates with actionable guidance for the implementation of successive M&A strategies. 

KEYWORDS

Sequential mergers and acquisitions, Event study approach, Core competencies, Huamao Logistics, Performance analysis

CITE THIS PAPER

Shuaihang Yi, Jiaying Shi, Research on the Motivation and Financial Performance of Continuous M & A of Huamao Logistics. Financial Performance and Operational Efficiency. Accounting and Corporate Management (2024) Vol. 6: 31-43. DOI: http://dx.doi.org/10.23977/acccm.2024.060205.

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