Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)

A Brief Discussion on the Causes of Enterprise Merger and Acquisition Failure

Taking Wanda Group’s Acquisition of Legendary Pictures as an Example

Authors
Liu Jiaxin
Corresponding Author
Liu Jiaxin
Available Online 2 June 2021.
DOI
https://doi.org/10.2991/aebmr.k.210601.018How to use a DOI?
Keywords
Mergers and acquisitions, Macroscopic reason, Risk
Abstract

In the past 20 years, with the development of economic globalization, the trend of mergers and acquisitions among enterprises has been significantly strengthened. Various types of enterprises are carrying out horizontal, vertical or cross-field strategic mergers and acquisitions, hoping to seize market share through synergies, reduce the resistance brought by competitors or improve the industrial structure of enterprises, so as to maximize the value of enterprises.[1] However, looking at the development history of mergers and acquisitions, the performance of most enterprises after mergers and acquisitions fails to meet the original expectations, and even some enterprises will be heavily in debt. In view of this phenomenon, most Chinese scholars pay attention to the micro pricing behavior of enterprises, and there are few researches on the macro level. Therefore, this paper adopts the method of combination of directional and quantitative, through Wanda’s failed acquisition of Legendary Pictures to illustrate the main macro reasons for the failure of most Chinese enterprises in M&A and the risk of M&A, and puts forward suggestions for the future development of M&A among enterprises.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
2 June 2021
ISBN
978-94-6239-387-5
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.210601.018How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Liu Jiaxin
PY  - 2021
DA  - 2021/06/02
TI  - A Brief Discussion on the Causes of Enterprise Merger and Acquisition Failure
BT  - Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)
PB  - Atlantis Press
SP  - 106
EP  - 109
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210601.018
DO  - https://doi.org/10.2991/aebmr.k.210601.018
ID  - Jiaxin2021
ER  -