Research On Performance Evaluation Of Dilong New Material Merger And Acquisition Based On Financial Strategic Matrix

M&A is an important means for enterprises to grow and optimize the allocation of market resources.In recent years,M&A of enterprises have become common in China,and cross-industry M&A have become a hot issue at home and abroad.Many companies operating traditional businesses have made strategic transformation through cross-industry M&A of emerging businesses.Whether M&A can improve the performance of enterprises is a question worthy of our attention.Event research method,financial index evaluation method and economic value added evaluation method are common methods for enterprise M&A performance evaluation.This paper adopts the financial strategy matrix evaluation method,which is based on the theory of economic value added and sustainable growth.It measures the financial status of enterprises from the dimension of enterprise value and cash status,Managers can visually see the changes of financial status of enterprises before and after M&A through the financial strategy matrix diagram.Dilong New Material acquisition of Meishengyuan is a typical cross-industry M&A case,which is a strategic transformation from the traditional building decoration materials industry to the game industry.Firstly,this paper reviews the research literature on financial strategy matrix and performance evaluation of M&A at home and abroad,and introduces the concepts of M&A,M&A performance and the theory,of financial strategy matrix,compares and evaluates common M&A performance,evaluation methods,and analyses the advantages of financial strategy matrix evaluation.Then,this paper takes Dilong New Material as the research object and uses its financial data from 2013 to 20 1 7 to construct a financial strategy matrix before and after M&A,so as to make financial evaluation of its operation performance before and after M&A.After the acquisition of Meishengyuan by Dilong New Material,its financial situation has changed from "deductive cash shortage" to "value-added cash shortage",which shows that the enterprise can bring benefits to shareholders and is creating enterprise value.At the same time,the company achieved rapid growth,and the sales growth rate exceeded the sustain able growth rate,resulting in cash shortage.Finally,the paper makes a detailed analysis of the performance of Dilong New Material before and after M&A from the dimensions of enterprise value and cash status.In view of its quadrant in the financial strategy matrix and its actual M&A situation,the following,suggestions are put forward:(1)Using financial leverage to optimize capital structure;(2)Sign a betting agreement to reduce the risk of mergers and acquisitions;(3)Attach importance to integrated management and improve R&D capability.It is hoped that it can help Dilong New Material improve its financial and operational level so as to better implement strategic transformation,and also provide reference for cross-industry M&A of the same type of enterprises.