Evaluation And Analysis On The Performance Of Lenovo's Acquisition Of Motorola Mobility

M&A is an important way for listed companies to optimize their shareholding structure,improve their business status,enhance their own value,and achieve sustainable development.It is also a long-term topic of market economy research.With the rapid development of information technology,more and more competitive technology companies are trying to enhance their competitiveness through mergers and acquisitions.Obtaining the technology and talents of the target company by means of mergers and acquisitions can indeed make the M&A enterprises grow and innovate.However,the high failure rate of industry mergers and acquisitions also reveals that the information technology industry mergers and acquisitions are facing risks and challenges.Therefore,in-depth research on the performance of mergers and acquisitions in the information technology industry is necessary.The core question in this paper is:What is the change in the performance of Lenovo's acquisition of Motorola's mobile and its causes?The main problem is decomposed into several decomposition problems:first,what is the motivation of Lenovo Group for mergers and acquisitions,and what effect is expected to be achieved;second,what kind of performance changes the mergers and acquisitions bring to the enterprise in the process of mergers and acquisitions;What are the underlying reasons for the change in performance after the merger?Based on the above research questions,the research ideas of this paper are as follows:First,combing the research related to M&A performance,defining the concept of M&A and M&A performance,and reviewing the motivations and processes of Lenovo's acquisition of Motorola Mobility.Secondly,from the two dimensions of long-term performance and short-term performance,answering whether Lenovo's acquisition of Motorola Mobile has improved the performance of the company;again,from the aspects of strategic design,mergers and acquisitions and resource integration,combined with internal and external situations,deep analysis of these changes the reason.Finally,the reference significance of this case is extended,and the countermeasures are proposed from the three dimensions of strategic design,merger and acquisition,merger and acquisition integration,and the progress of the merger and acquisition and the problems that can be further studied in the future are summarized.The conclusions of this paper are as follows:(1)Lenovo's acquisition of Motorola Mobility has not achieved the expected results;(2)From the perspective of short-term market response and long-term financial performance,the M&A event has not had a positive impact;(3)Lenovo should clarify the market positioning.Create core products and make appropriate trade-offs;based on profitability estimates,accurately measure corporate value,consider costs and benefits,and integrate products and culture.The innovation and application significance of this paper is to combine the long-term performance and short-term performance of enterprise mergers and acquisitions,and to analyze the effects of mergers and acquisitions by quantitative and qualitative analysis.Different from the previous research,when evaluating long-term performance,the factor analysis method and the entropy method are used to calculate the comprehensive score,and the scores of the calendar year are compared to select a more realistic method.The significance of this paper is to make the enterprise realize the impact of mergers and acquisitions on the company,so as to make a careful plan before the merger,and to effectively integrate after the merger.It also proves that the M&A transaction may not achieve the expected M&A effect.When considering mergers and acquisitions,it should be fully considered from the strategic design,the industry market and its own situation.