Analysis On The Implementation Effect Of Merger And Acquisition Strategy

Since 2009,China's m&a market has shown a growing trend.Enterprises in the cultural media industry are frequently engaged in mergers and acquisitions to develop the upper,middle and lower industrial chains of the industry in an all-round way.In 2015-2016,m&a activity reached its peak.However,since the second half of 2016,strict national policies and regulations have led to a decline in the activity of mergers and acquisitions in the film and television industry and even the entire cultural media industry.Mergers and acquisitions in the process of enterprise development,each enterprise has always been very concerned about a focal point of enterprise through merger and acquisition behavior,to expand the size of the enterprise to the transformation of development or through mergers and acquisitions,looking for a new stock,or through mergers and acquisitions to improve the competition ability of enterprise itself in the market,enterprise product market share,etc.What kind of merger and acquisition strategy does the enterprise adopt to achieve these goals? What is the effect of the merger and acquisition strategy after the enterprise implements such a merger and acquisition strategy? After the merger and acquisition,the integration effect of the two will be greater than two.For the analysis of the strategic effect of enterprise mergers and acquisitions,there are mainly the following methods: first,the analysis of the enterprise's historical financial statements and related financial data;Second,dupont financial comprehensive analysis method,this method can more directly reflect the relationship and changes of various indicators;Third,the indicator method of economic added value(EVA),which is widely used in western developed countries.Fourth,the intrinsic value method,namely cash flow discount method,to estimate the value of the enterprise.At present,EVA index evaluation system is mostly used,but this index is an annual index,and strategy is a long-term behavior.This index does not match with the analysis of the effect of merger and acquisition strategy.In the existing analysis methods,the use of value analysis method on the strategic effect of enterprise mergers and acquisitions analysis is still relatively small.Value analysis means that the value of an enterprise is the total present value of the future cash flow generated by it calculated by the discount rate.Then the estimated value is compared with the actual value of the enterprise.This paper chooses the case of aofi entertainment company in the culture and media industry to analyze the strategic effect of merger and acquisition.Firstly,the relevant research background,research development trend,relevant theoretical basis and the development of China's m&a strategy are described.Then the case is analyzed.The case first introduces the background of the company and the process of merger and acquisition from listing.Secondly,it analyzes the m&a strategy of aofe entertainment.Then the case companies are analyzed to obtain the results of the case study.The internal value method and the improved dupont comprehensive financial analysis method are used to evaluate the strategic effect of m & a.Intrinsic value method is the company in 2013-2018 financial statements into the history of management with financial statements,according to the management of financial statement is used to test out the entertainment in 2019-2023 and 2024 to infinity of equity,cash flow estimates that the entertainment of equity value,and comparing with the real value,analysis the cause of the estimated value and actual value are inconsistent.Finally,the paper analyzes the success and failure of aofe's m&a strategy.Secondly,Suggestions and countermeasures are put forward for the reasons and problems of the failure of aofi entertainment.The author hopes to provide some reference for other enterprises in the same industry in the m&a strategy through the analysis of aofi entertainment.