Study On The Motivation And Performance Of Huadong Heavy Machinery Acquisition Of Harvest Star Technology

China's New OTC Market were established in 2006.In 2013,the New OTC were expanded and began to accept applications for listing of enterprises nationwide.China's New OTC Market gradually become an important part of China's multi-level capital market,and its' advantages in the capital market are gradually emerging.The state has issued a series of policies to support the development of New OTC enterprises.The New OTC enterprises has developed with their own innovation ability and the support of the state,which also makes listed companies see the advantages of the New OTC enterprises,and in the selection of target enterprises,the target company from the original listed companies began to transfer to the New OTC enterprises.This paper selects the typical case of the transformation of traditional equipment manufacturing enterprises in 2017-East China heavy machine acquisition Harvest Star Technology,through the acquisition of the new three-board enterprises,East China heavy machine smoothly transformed into a high-end equipment manufacturing enterprises.This paper makes a detailed analysis of the merger and acquisition activities and draws the corresponding conclusions,while providing valuable inspiration for the future development of East China heavy aircraft and other equipment manufacturing enterprises.This paper combines literature research and case study to evaluate the motivation and performance of East China heavy machine merger and acquisition of Harvest Star Technology.First of all,based on the research results of the previous people,the relevant concepts of mergers and acquisitions,the basic types of mergers and acquisitions and the relevant theories of the motivations of mergers and acquisitions are introduced,and secondly,the current situation and characteristics of the new three-board enterprises of mergers and acquisitions of listed companies in China are analyzed,and the basic situation of the merger and acquisition parties and the process of mergers and acquisitions are briefly introduced,and the factors of merger and acquisition are analyzed.Third,the short-term performance of mergers and acquisitions is evaluated by means of event research,and the long-term performance of mergers and acquisitions is evaluated using traditional financial indicators,EVA and non-financial indicators.Finally,the following conclusions and revelations are drawn,from the short-term performance point of view,the cumulative excess rate of return at the end of the window is negative,indicating that the merger did not increase the wealth of shareholders in a short period of time,from the traditional financial indicators,solvency,operational capacity and profitability have obviously improved,the overall growth capacity needs to be further improved.EVA index after one year of mergers and acquisitions turned a profit,reached the highest value in nearly five years,from the non-financial indicators,the market share of enterprises has increased,technological innovation ability has been enhanced,staff structure is constantly optimized,personnel quality is constantly improving,brand-building ability highlighted.Overall,the performance of East China Heavy Machine has improved,and the acquisition is also conducive to the company's sustainable development.Therefore,this paper draws the following enlightenment: the company should choose the appropriate object of mergers and acquisitions,reasonable evaluation of the value of the new three-board enterprises,pay attention to the integration after mergers and acquisitions and pay attention to policy orientation,which can not only increase the chances of successful merger and acquisition of new three-board enterprises,but also contribute to the long-term development of enterprises.The innovation point of this paper is that,on the one hand,in recent years,the new three-board enterprise sits as a popular choice for the merger and acquisition of listed companies,and this paper selects the representative case of the new three-board merger of listed companies in 2017.On the other hand,with the promotion of Industrial 4.0 and China Manufacturing 2025 and other policies,the state is paying more and more attention to high-end intelligent manufacturing,studying the successful merger and acquisition,enriching the research results of China's equipment manufacturing enterprises in the transformation and upgrading.In addition,this paper uses four methods,including event research,traditional financial index,EVA and non-financial index,which makes the conclusion more credible.