A Case Study On The Continuous M&A Performance Of Bluefocus Co.,Ltd

Basing on the background of the wave of mergers and acquisitions,BlueFocus Communication Group Co.,Ltd,due to its unique large-scale acquisition strategy,gains lots of attention from scholars,whose value was greatly improved in just five years.After the merger,has the company performance really improved?Has the value of the company really grown?These are what this paper tried to explore through a case-study way.Using the method of event study and financial index method from two aspects of short-term and long-term,this paper analyzed the performance of mergers and acquisitions made by BlueFocus from 2010 to 2015 Firstly,I summarize the four characteristics of M&A strategies in BlueFocus.In the event study,I used a(-10,10)date-window to measure the CAR.BlueFocus gained a 7.4%of CAR during the date window of(-10,10),showing that the short term performance was positive.Then I used a factor analysis way to measure the long term performance by calculating the complete financial index.Results shows that,BlueFocus gained a negative financial performance before listing,however,it gained positive performance after it was listed in 2010.The M&A strategies brought positive influence to the next year and next two years'performance of BlueFoces.Specially,the analysis of the financial situation of BlueFocus showed that,the growth of asset is due to the growth of business goodwill in accounting,rather than substantive growth.Finally,basing on the above research of the positive M&A performance,I concluded the reason why BluceFocus can gain positive short-term and long-term M&A performance.