The Research On M&A Performance Of IC Design Industry Of M Company

In recent years,due to the ZTE incident and even Sino-US trade issues,China has paid unprecedented attention to the integrated circuit industry in both the government and the capital circles,and countries have gradually realized that the integrated circuit is regarded as a strategic material of national security.Since 2015,the global IC industry has entered a new round of mergers and acquisitions.The promulgation of a series of policies,such as the State Council's "National Outline for Promoting the Development of Integrated Circuit Industry",and the capital cluster based on the National Investment Fund for Integrated Circuit Industry have also actively promoted the development of domestic integrated circuit mergers and acquisitions.In this context,through case study,this paper describes the background of M company merger and acquisition in detail,and analyzes the motivation of M company merger and acquisition with five forces;secondly,it chooses the indicators from five aspects: operational ability,solvency,profitability,development ability and innovation ability by financial indicators analysis method.This paper studies the growth trend of data before and after M&A in the past six years,and compares it with the average of the top five IC design enterprises in the world to test whether they produce performance.Thirdly,it uses EVA model to compare the EVA data before and after M&A and calculates enterprise value by discounted cash flow method,and analyzes M company comprehensively with SWOT.The situation and its competitiveness,linked to the integration process of M&A,and then come to the conclusion that the acquisition achieves financial and non-financial performance.Finally,through the above analysis,it is concluded that the company as a whole did play an integrated effect of 1 + 1 > 2 mergers and acquisitions,which is worthy of other companies' reference,but also has room for improvement and progress.At the same time,the paper puts forward some suggestions and Countermeasures on how to improve the performance of IC design enterprises,hoping to provide guidance and reference for M company and other IC design enterprises in the future,so as to improve the chances of successful M&A.