Analysis Of M&A Value Creation Mechanism Based On Intellectual Capital

In the period of intellectual age,the physical capital such as factories,machinery and equipment alone cannot support the development of enterprises.The role of intellectual capital in the development of enterprises is increasingly important.The enterprise's business activities,investment activities,and fund-raising activities are inseparable from intellectual capital,and the intellectual capital owned by the company becomes the key to value creation.Mergers and acquisitions,as an investment activity of enterprises,are selected by more and more companies.In recent years,the amount of M&A transactions in China has continued to grow.More and more companies have chosen to increase their value through mergers and acquisitions.However,not all mergers and acquisitions can realize value creation,some mergers and acquisitions even damage corporate value.Therefore,many scholars have valued M&A value creation.The drivers have been studied and many different conclusions have been drawn,but there is still a lack of a complete system to explain the value creation of M&A.Scholars in the field of strategic management believe that the M&A strategy in the M&A phase will affect value creation.Scholars in the financial field believe that the M&A payment cost determined in the M&A transaction phase will affect M&A value creation.Scholars who study synergy believe that the main source of value creation in M&A are from integration phase.The synergies between the resources of the M&A parties and the realization of the synergies come from the integration of the two parties after the M&A.Although scholars have discovered through studies that M&A strategy,M&A costs and synergies are the direct sources of M&A value creation,they have not further studied the value creation factors that drive M&A strategy,M&A costs and synergies.At the same time,scholars who study intellectual capital believe that intellectual capital is the ultimate source of corporate value creation,and that intellectual capital acts on various activities such as business activities,investment activities,and fund-raising activities,thereby making business activities,investment activities,and fund-raising activities creates value.Because M&A is one of the investment activities of companies.,therefore intellectual capital will play a role in value creation in the M&A process.Specifically,intellectual capital will affect the formulation of M&A strategies,the determination of M&A costs,and the generation of synergy effects.Enterprises achieve the purpose of achieving strategic effects,reducing costs,and achieving synergies.In the field of mergers and acquisitions,scholars have found through research that companies' strategic decision-making power,information gathering and analysis capabilities,negotiation capabilities,structure,corporate culture,government-enterprise relations,financial institution relations,and other factors are the driving factors in M&A value creation strategies(1).Although these factors are all elements of intellectual capital,scholars have not formally explained the value creation of M&A from the perspective of intellectual capital.Therefore,this article takes the acquisition of AMC by Wanda Group as an example,it focuses on analyzing how various intellectual capital elements influence the formulation of mergers and acquisitions strategy,the determination of the cost of mergers and acquisitions,and the generation of synergy effects,so that mergers and acquisitions can achieve strategic effects and reduce payments cost,achieve synergy,and ultimately enable companies to realize value creation.This article is based on a large number of related literature.The case information are collected through various ways.It is found that in the stage of merger and acquisition preparation,intellectual capital such as strategic decision-making power,information gathering and analysis capabilities,structure,government-enterprise relations will affect the preparation work of the main company,which in turn affects the value creation of mergers and acquisitions.During the transaction phase,intellectual capital such as negotiation capabilities,organizational structure,and financial institution relations influence M&A transaction work,thereby affecting M&A costs.At the M&A integration stage,M&A integration capabilities and corporate culture are such that intellectual capital is created by M&A value.The key driver.In the theoretical part,this article first introduced the research background and significance,and reviewed the existing research on intellectual capital and M&A value creation.Then this article introduced the theoretical overview of intellectual capital and M&A value creation.Then in the first subsection of Chapter 3,this paper emphasizes the stages of M&A and its value creation performance.In particular,the various activities in the M&A preparation phase are conducive to M&A to achieve strategic effects.The various activities in the transaction phase are conducive to reducing the cost of M&A payments.The various activities in the M&A integration phase are conducive to achieving synergies.Finally,the article elaborates how intellectual capital factors affect the value creation of mergers and acquisitions in the M&A preparation phase,transaction phase and the integration phase,which has laid a theoretical foundation for case studies.In particular,in the stage of M&A preparation,the strategic decision-making power,information gathering and analysis capabilities affect the realization of strategic effects by influencing the implementation of various M&A strategies.The organizational structure of structural capital affects the efficiency of the work thus affects the realization of strategic effects;The relationship between government and enterprises in relational capital will provide support for the merger and acquisition strategy,which will help guarantee and realize the strategic effect.In the stage of M&A transactions,the negotiation capability will help reduce the cost of mergers and acquisitions by affecting the negotiation of M&A parties.The structure of structural capital affects the cost of M&A by affecting the efficiency of various tasks in M&A transactions.The relationship between financial institutions is conducive to alleviating the financial pressure of enterprises,and it is also conducive to reducing the cost of mergers and acquisitions.In the stage of M&A integration,M&A integration capability influences the development of synergies through the implementation of M&A integration;the organizational structure and corporate culture affect the realization of synergies by affecting the speed and efficiency of M&A integration work.The fourth chapter of this article introduces the background information of the case,including the industry background and the profile of the M&A parties,as well as the implementation of each phase of M&A.It also analyzes the value creation performance of the Wanda Group M&A AMC and provides an objective fact for the case study.In the fifth chapter,this article analyzes the value-creating role of intellectual capital in the preparation phase to integration phasse.First,intellectual capital enables mergers and acquisitions to realize value creation at the strategic level by influencing various activities in the preparation phase of mergers and acquisitions.Second,intellectual capital makes mergers and acquisitions payment elements conducive to reducing merger and acquisition payments by affecting various activities during the M&A transaction phase.Finally,intellectual capital achieves synergy through affecting various activities during the integration phase.In different phases of mergers and acquisitions,human capital,structural capital,and relational capital perform in different forms,and they each play an important role in value creation.Finally,this paper concludes that human capital is the source of M&A value creation.Structural capital influences M&A value creation by affecting the efficiency of M&A work.Relational capital is the guarantee for M&A value creation.This article points out that we should pay attention to intellectual capital in mergers and acquisitions.Acquisition companies must continuously improve their leadership and staff quality,and invest in relational capital to create a good M&A environment.