A Case Study Of Alpha Group M&A April Sky

Since 2010,the government has introduced a series of policies to encourage the development of cultural industry,cultural industry M&A positive constant,cultural entertainment industry in China gradually rise.From 2010 to 2016,the domestic cultural industry mergers and acquisitions experienced a complete cycle from expansion to contraction.A successful completion of mergers and acquisitions sums up to 292,showing a high degree of active market.This article takes the event happened in 2015 that Alpha Group M&A April Sky as a case,then introduce the merger process.It summarizes the theoretical analysis framework of motivation and performance of mergers and acquisitions of cultural and recreational enterprises,and analyze the motivation and performance of M&A.Combined with merger and acquisition motivation,from the perspective of non-financial indicators to find the effective realization of the desired target,bringing the increase in whole corporate value;Using the event study method,it is conducted that the short-term performance of Alpha Group is significant;Using financial index method,it finds that M&A brings negative long-term performance.The reasons that Alpha Group do not pay attention to the integration after M&A,causes short-term solvency,operational capacity and profitability of Alpha Group significantly decline.Finally,four suggestions on merger and acquisition of culture and entertainment enterprise are proposed: clear the motives and fit corporate strategy,guard against financial risks,control cost reasonably,set the expected performance criteria,which are aimed to enhance the effect and efficiency of merger and acquisition of cultural entertainment enterprise.