The Research On HB Company's Performance Of Continuous M&A

More than 100 years of development history which makes M&A an effective way for many enterprises to grow and expand all around the world.The academic circle has kept constant attention and research on the merger and acquisition activities,and summed up many theoretical results.In order to help the enterprise managers to improve the performance of the company,scholars summed up a number of theoretical results.With the rapid development of information technology,the vigorous support of national policies has brought domestic cultural media enterprises to a new stage of development.Some mature enterprises,which hope to become an industry leader in the future,develop their own profit models by horizontal or vertical mergers and acquisitions.And HB Company is one of them.This article hopes to find out the influencing factors and countermeasures by analyzing the influence of HB's continuous M&A on company performance,which will provide meaningful inspiration and reference for cultural media enterprises.First of all,the article expounds the significance of research on continuous M&A.And it reviewed the theoretical basis of motivation and performance research methods of mergers and acquisitions in domestic and foreign literatures.Then it introduced the continuous M&A process of the company,by taking HB's M&A activities as a case.From the aspects of the company's own development direction,the shaping of the industry chain and the characteristics of the industry,this paper analyzed the motivations for promoting M&A activities.The company's M&A effect is evaluated in two aspects:short-term performance and long-term performance.When analyzing short-term performance by using the event method,it has found that the first three acquisitions received positive cumulative abnormal returns except for the fourth time.When it comes to long-term performance by using financial indicators,EVA and MVA,the article uses charts to summarize the performance changes of each year intuitively.Finally,it find out the factors that affect the performance of the company's continuous M&A and give some solutions which hope to improve the company's performance in the future.Continuous M&A activities can bring positive effects to HB's performance,which has been proved by the results of short-term performance and long-term performance.The company has gathered valuable resources such as quality IP and film and television practitioners which makes it have a full range of integration and production capabilities.It expand its own profit channel and further enhance the company's sustainable development and create value capabilities.The continued acquisition of HB's has also brought valuable experience and inspiration to the cultural media industry.For example enterprises can rely on mergers and acquisitions to achieve leapfrog development;the core of the merger and acquisition should be to improve the competitiveness of the enterprise;enterprise strategy should conform to the development direction of the times and the direction of merger and acquisition should be consistent with the enterprise strategy.At the same time,this paper analyzes various factors that affect HB's continuous M&A performance.Excessive valuation of target companies can damage corporate financial performance,high cash payment can reduce the company's debt paying ability,and the volatility of the enterprise's profitability is very high.However these factors can be avoided by adopting relevant measures in the future M&A activities.It includes making reasonable assessment of target firm,establishing comprehensive rules and improving the information disclosure of the company.I hope this article can help improve HB's future M&A performance.And it could provide meaningful inspiration and reference for cultural media enterprises.