Performance Analysis On Up Optotech Merging Yuheng Optics

Enterprise merger and acquisition(M&A) is an important means to improve the management status, to achieve strategic objectives and to optimize the resources of the company. M&A performance is an important factor in enterprise merger and acquisition, which not only can reflects the strategic objectives of the enterprise, but also reflects whether the M&A activity can bring value added value to the enterprise. In this thesis, based on the background of the M&A of Up Optotech technology company limited by shares, to its merger plan and the payment method to carry on the elaboration, analysis of the causes of the M&A and select event study method and EVA evaluation method combined together to analyze the short-term performance and long-term performance before and after M&A in Up Optotech technology company. Better accurate measure of corporate value increase or decrease changes.In this thesis, Up Optotech technology company limited by shares(Up Optotech) acquisition of Changchun Yuheng Optics company, as the case study of this acquisition, using event study method on the M&A events of short-term performance analysis, in the long-term performance is through the pros and cons of compared with the traditional financial index method and EVA evaluation method selection with EVA evaluation method to carry on the analysis. It is found that the cumulative abnormal return of Up Optotech company’s acquisition in the short term is significantly positive. The wealth effect of shareholders has increased significantly, the event window period in mergers and acquisitions performance good, indicating that the market generally optimistic about the Up Optotech company acquisition Yuheng optics business. This acquisition for the company and shareholders to create value, subsequent to analyse M&A long-term performance. In the past few years Up Optotech company performance point of view, according to the change of the index of EVA found that two years before the M&A and the acquisition of the year, EVA value has been on a downward trend, but one year after the M&A, EVA growth rate reached 4.58%, far better than the industry average. This shows that this acquisition brings benefits to shareholders, in accordance with the vision of the development of corporate strategy. Through this acquisition, Up Optotech company won the Yuheng optics of the core technology, the integration of industrial chain, not only to expand the scale of the assets of the company and enhance the product influence, enhance the company’s position in the industry and the core competitiveness. Thus, this thesis EVA used in Up Optotech company M&A performance evaluation and make recommendations to improve EVA improvement, and in which the analysis of the key points to make successful acquisitions of other companies to provide reference in the event of mergers and acquisitions.