Author(s)

Lanzhou Ye

Corresponding Author

Lanzhou Ye

ABSTRACT

With the development of China’s market economy, mergers and acquisitions (M&A) have become an inexhaustible driving force for the growth of modern enterprises. But most M&A have failed, the economic consequences of M&A have not been consistent. This paper uses a single case study, analyzing the economic consequences of acquisition between HNA Technology and Dangdang Network. Starting from the theoretical basis, we analyze the causes of M&A and the reasons for failure, confirming the decision-making mechanism of enterprise integration. Then analyze the economic consequences of M&A in terms of financial aspects, manage aspects and market aspects. Finally, we take the lead and give advice. Appropriate leverage should be paid attention to in M&A, preparing well before the merger; abandoning short-sighted behavior, focusing on reasonable valuation and integration issues after M&A. The study contributes to the selection and implementation of M&A strategies for Chinese enterprises.

KEYWORDS

M&A, HNA Technology, Dangdang Network, Economic consequences