Research On M&A Performance Of Software Industry

M&A is an effective means for companies to obtain resources,expand market share,and gain capital appreciation.In recent years,mergers and acquisitions in China's capital markets have been on the rise.As the enthusiasm for mergers and acquisitions has increased,the software industry has also set off a wave of mergers and acquisitions.However,in reality,companies often generate different motivations for mergers and acquisitions because of the needs of their own circumstances,and various merger and acquisition motives ultimately contributed to the occurrence of corporate mergers and acquisitions.Although the frequent occurrence of M&A activities has stimulated the academic community's enthusiasm for M&A activities,whether the M&A can enhance the performance of the company has so far reached no consensus in the academic community.After reviewing and researching the domestic and foreign M&A performance evaluation methods and M&A motivation theory,this paper conducts a detailed case study on the merger and acquisition motives and M&A performance of Hyron software acquisition 2345.At present,the academic community evaluates the performance of corporate mergers and acquisitions using a performance evaluation system based on traditional financial indicators.With the increasing complexity of the capital market,this evaluation system is no longer applicable to the assessment of the increase and increase of corporate value.The economic value added(EVA)has opened up new ideas for the effective evaluation of the increase in the value of the company,and has gradually been recognized and used by the international community.First of all,this article elaborates on whether mergers and acquisitions can improve corporate performance.It also introduces the common methods used by academics to evaluate M&Aperformance,which leads to EVA analysis and analyzes the advantages of EVA analysis.Secondly,this article combines the development status of the software industry and mergers and acquisitions reorganization as well as the characteristics of the software industry,points out the adjustment issues that EVA needs to pay attention to,and in the chapter of performance evaluation,firstly adopts the event research method to study the short-term performance of mergers and acquisitions;EVA analysis method is used to study the medium and long-term performance of mergers and acquisitions.Finally,non-financial indicators that meet the characteristics of software companies are selected to further analyze the business performance of Hyron.In this paper,through the evaluation of merger and acquisition performance of Hyron,it is found that mergers and acquisitions have a positive impact on Hyron,whether in the short-term or long-term,which not only improves the business performance of Hyron,but also increases the profitability of Hyron's main business.The capability also gained the advantage of brand agglomeration through 2345,obtained stable and substantial user resources,expanded the market scale,and finally succeeded in achieving diversified operations.The successful experience of this case has promoted the transformation and upgrading of the software industry,and provided new ideas for enterprises to obtain financial support.I hope that the study of this paper can have practical implications for the merger and acquisition of the software industry.