Shunwang's Series Of Acquisitions' Case Study

Under the current situation of the Internet industry,there has been no such opportunities as Alibaba and Tencent's era.If Internet companies want to survive and grow in such a gap,they should do something in their own vertical field.In order to stay ahead in the vertical field,it is necessary to lead the entire industry through innovation.Shunwang Technology's vertical field leadership strategy is clearly recognized by the capital market.In the past few years,Shunwang Technology,through the extension of various mergers and acquisitions,has injected new ideas and impetus into its future development.This article selects Hangzhou Shunwang Technology Co.,Ltd.to be the case study 's object.Through the interpretation of the Shunwang technology's acquisition strategy,combined with M&A motive theory,Shunwang technology 's acquisition announcement,and the characteristics of the company's industry development,the reasons for the Shunwang technology acquisition strategy are summarized,that is,to achieve synergies and expand market forces.The complementarity of high-quality assets such as industrial organizations and technology brands,and the recognition of capital markets,are embodied in the establishment of core competitiveness of enterprises,increase of market share,diversification of distribution business,the convenience of high-quality policy environment,value-added of brand value,and increase in shareholder profits.This article used event research method,stock price change method,and financial index analysis method to evaluate the merger performance of Shunwang Technology,and from the perspective of profitability,growth capacity,operating costs,operational efficiency,market share,and shareholder benefits,etc.Concluded that the company's leading M&A strategy has had a positive impact on Shunwang's M&A performance.It has a particularly significant effect on the improvement of profitability and capital efficiency of the main business,and it has a positive effect on Shunwang's market share.Based on the calculation of CAR values,M&A activities have brought certain benefits to Shunwang Technology's shareholders.However,Shunwang Technology should further complete the post-merger integration work.M&A will enable Shunwang Technology to significantly increase its total assets.