Research On The Motivation And Performance Of Cross-industry Mergers And Acquisitions

As the listed companies have been "touching the net" recently,all major traditional industries have adopted the way of merging Internet related enterprises to adjust the industrial structure,actively seek transformation,and achieve the integration with "Internet+".Under the environment of slowing economic growth,Internet convergence can accelerate the upgrading and transformation of traditional industrial chain.At present,cross industry mergers and acquisitions related to "Internet+" have become a fast track for the integration and development of traditional industries.For a long time to come,M&A will continue to be one of the important means of optimizing the allocation of market resources.However,whether cross-industry mergers and acquisitions will improve the performance of traditional enterprises,whether it is in line with the development strategy of traditional enterprises,and through the study of existing cross-industry mergers and acquisitions cases,we can explore a successful way to adapt to the transformation of traditional enterprises.This paper chooses Century Huatong merger Tianyou software,Qiku network case for research.Firstly,the basic situation of the case enterprise and the industry background of the enterprise are introduced,and the integration after merger and acquisition is analyzed.Secondly,based on the industrial environment of enterprises and their own strategic demands,the motivation of mergers and acquisitions is analyzed.Then,through different performance analysis methods,the paper makes a comprehensive analysis of the effect of M&A from three aspects: financial performance,market performance and value creation efficiency.Through the comparative analysis of financial indicators before and after Century Huatong M&A,it is found that M&A improves the financial situation of enterprises and achieves positive financial performance.This paper uses the event study method to analyze the market performance of Century Huatong M&A,and draws a conclusion that M&A is beneficial to shareholders' wealth creation.The value creation ability of Century Huatong is analyzed by using the method of economic value added.It is found that the value creation ability of enterprises has been continuously enhanced after mergers and acquisitions.Finally,through the analysis of the various links in the merger and acquisition process of Century Huatong,the case enlightenment is obtained.This M&A case has produced good M&A performance,which has a certain reference significance for traditional industry enterprises to implement diversified M&A in the future.