Research On The Value Creation Mechanism Of Donghua Software's Continuous M&A

In 2008,China began to increase its support for the software and information technology industry;the three "five-year plans" continued to promote the informationization process and the advancement of IT technology in all major domestic industries.The domestic software industry market is relatively fragmented,the leading enterprises are not high,and the competition is fierce.The profit model of selling hardware equipment with low technology content will soon be eliminated.Some large enterprises in the domestic software industry have begun to adopt mergers and acquisitions to integrate the industry,acquire talents,technologies,markets and other resources,and transform the development model.Due to the rise of mergers and acquisitions in the industry,whether software companies have created the expected value for the enterprise through mergers and acquisitions,the achievement of the M&A target deserves in-depth study and provides reference for the development of the software industry.Based on the existing research results of the literature,based on the synergy effect,resource theory and capability theory,this paper first introduces the case situation,sorts out the background and program elements of the typical M&A events screened,and then builds the ability.The research framework of the value creation of core elements analyzes the changes in the M&A capability of M&A in the event of continuous mergers and acquisitions,and finally analyzes the value of M&A creation and evaluates it,and draws conclusions.The research results of this paper are as follows:(1)The M&A capability of an enterprise can be decomposed into M&A decision-making ability,M&A transaction execution capability and M&A resource integration capability.Each M&A capability is composed of resource elements that affect capability and is reflected in the use of resources.Mergers and acquisitions are not independent,but are linked to each other in M&A transactions.(2)The company's multiple mergers and acquisitions will accumulate experience in M&A transactions.Due to the specific differences in transactions,these experiences are not all applicable to the next merger.Therefore,enterprises need to exercise various M&A capabilities and promote capabilities in different M&A events.Increase the probability of success in M&A.(3)Merger and acquisition integration capability is the key link for M&A to create value.Good integration measures enhance the value of M&A.Imperfect integration will damage the value created by M&A in the long run.