Research On Synergy Effect Of Cross-Industry Continuous Merge And Acquisitions

At present,the development mode of China's traditional industries is extensive,and there are problems such as serious product homogenization and insufficient effective supply.Under the background of supply-side structural reform,enterprises in traditional industries have an increasingly strong demand for transformation and upgrading.With the prosperity and development of the mergers and acquisitions(M&A)market,the M&A activities of enterprises are increasing,and the M&A market shows obvious continuity and crossover.More and more enterprises in traditional industries are diversifying their businesses or transforming their industries through cross-industry M&A.However,due to the different business models of different industries,the risk of failure of merger and acquisition is large,and continuous M&A further increases the risk of M&A.It is worth paying attention to the issue of how the cross-industry continuous M&A bring positive influence to enterprises.Synergy effect is one of the main motivations of M&A,and it is also the common focus of M&A evaluation research.Therefore,this paper studies the synergy effect from the perspective of cross-industry continuous M&A,analyzes the advantages and problems of case companies in cross-industry continuous M&A,and provides certain reference for other similar enterprises.Through literature review,it is found that previous researches on continuous M&A were all aimed at continuous M&A in the same industry,and the synergies were divided into three dimensions of operation,management and finance for analysis.Different from the motivation of M&A,the cross-industry M&A has great strategic significance and higher risk.If the analysis is still carried out in the traditional way,focusing on the analysis of the synergistic effect of tangible assets,it will ignore the synergistic effect of intangible assets such as technology,brand and strategic layout of industrial chain.Therefore,this paper combines the synergy theory of M&A,strategic synergy theory and industrial chain theory,and increases the analysis and evaluation of strategic dimension on the basis of traditional synergy evaluation,making the analysis of synergy closer to the characteristics of the case.Through sorting out the continuous M&A events of Kaiser culture transforming from clothing industry to home entertainment software industry,and combining with the development status of the industry,this paper analyzes the motivation of Kaiser culture's M&A and the synergistic effect it produces.It is concluded that there are four main motivations for cross-industry continuous M&A of Kaiser culture: Industry transformation to promote younger life cycle of enterprises;Quickly start visibility improve competitiveness;Exert synergistic effect;Complete the industrial chain layout and other strategic planning.Then,through in-depth analysis of the four dimensions of synergies,it can be found that Kaiser culture as a whole has achieved positive synergies.In terms of operation coordination,the profitability and growth ability have been significantly improved.In terms of management coordination,it has certain cost control ability but poor asset management ability.In terms of financial coordination,funds are effectively utilized,financial risks are increased but kept at a low level,and many preferential tax policies are obtained.In terms of strategic synergy,the brand is recognized by the industry and the industrial chain is basically formed,but the synergy effect of the industrial chain is not obvious.According to the case of cross-industry continuous M&A of Kaiser culture is introduced,the analysis of the agent and the synergistic effect of Kaiser culture can be found in the process of cross-industry continuous M&A has many bright spots,and there are some problems.It is concluded that the strategic planning and merger preparation should be emphasized,the linkage between industry chains should be strengthened,the risk of goodwill impairment should be avoided,and the ratio of current liabilities should be avoided.In order to promote the synergistic effect,this paper also puts forward some suggestions based on the industrial environment.In addition,through the case study of Kaiser culture,it can be found that the cross-industry continuous mergers and acquisitions can produce positive synergies,which are derived from the interaction between the old and new industries and between the acquired companies,and the management synergies are the difficulties in achieving the cross-industry continuous M&A synergies.