Performance Analysis Of Century Huatong Cross-Border Continuous M&A

The competition among enterprises in today's market has gradually evolved into competition among industry chains.Regardless of the current situation of traditional enterprises,they need to be transformed and upgraded.They can be realized in many ways,such as relying on company advantages to develop new products and expand the scale of the company's business.And implementing a diversification strategy.At present,more and more companies in the market choose diversified business strategy as the future transformation and development strategy.Cross-border M&A will play an important role in diversifying the company and optimizing market resource allocation,which can help the general enterprises to Efficiency gains key resources needed for new industries,new areas,new markets,rapid business expansion and product promotion.However,with the significant increase in M&A events,this has also led to the trend of continuous mergers and acquisitions in some companies' M&A activities.2014 can be called a year of explosive growth in China's M&A market,and the macro and market environment have greatly contributed to China's corporate mergers and acquisitions.In this context,the traditional auto parts company Century Huatong has successively acquired a number of online game companies since 2014.The online game industry as an emerging sunrise industry has huge development space and received a series of government policy support.It can also be said that traditional industries and emerging industries blend.Through this series of cross-border mergers and acquisitions,Century Huatong has entered the development path of the dual main business of auto parts and online game business.This paper analyzes the performance of Century Huatong's crossborder continuous mergers and acquisitions,and gives empirical conclusions and empirical implications.This paper combines theory and case.The first part of the text expounds the relevant theories of cross-border M&A and continuous M&A motivation and performance evaluation,and the research results of domestic and foreign scholars in this respect.These are the theoretical basis of this paper.The selection of the Century Huatong M&A event was conducted as an example.The second part introduces the general situation of Century Huatong cross-border mergers and acquisitions,including the situation of both parties,industry background introduction,merger and acquisition process,and then combined with the motivation theory to qualitatively analyze the motivation of Century Huatong cross-border continuous mergers and acquisitions.The third and fourth parts are the empirical part of this paper.The short-term performance and medium-and long-term performance of Century Huatong cross-border M&A are analyzed.On the one hand,the event research method was used to evaluate the shortterm performance of Century Huatong's cross-border mergers and acquisitions.The study found that the market is generally optimistic about the cross-border M&A activities of Century Huatong,and the merger has brought positive excess returns to shareholders.On the other hand,the data envelopment analysis(DEA)method and financial indicator analysis method were used to evaluate the medium and long-term performance of Century Huatong's cross-border continuous mergers and acquisitions,and compared with the industry values.The study found that in the long run,crossborder continuous mergers and acquisitions also It brings good benefits to the company and has certain strategic significance.The last part draws conclusions and implications.Through the research,this paper believes that Century Huatong has improved the long-term and short-term performance of enterprises through cross-border continuous merger and acquisition activities,strategically realized industrial transformation,and diversified business enterprises that have entered the dual main business development of online games and auto parts from traditional enterprises.A successful cross-border continuous merger case.At the same time,it can be found from this case that the choice of M&A target and national policy are the key factors for the success of M&A.It is necessary to cause enterprises with similar mergers and acquisitions to pay sufficient attention to achieve the purpose of M&A.