Research On The Financial Effect Of BesTV M&A Activity Based On Harvard Analysis Framework

With the rapid development of economy,enterprises and investors have entered a new normal in seeking their own development and developing the whole economy.Because of the extensive development of tradition of Chinese enterprises in the past,it has been difficult to adapt to the challenges of the new market.Some enterprises have realized the transformation and development of enterprises through mergers and acquisitions,corporate mergers and acquisitions have become increasingly popular on a global scale,and China's M&A market has been expanding year by year.Even if corporate mergers and acquisitions occur frequently,it does not mean that all mergers and acquisitions can bring good mergers and acquisitions,and many companies have been bankrupt due to blind mergers and acquisitions.Therefore,financial analysis of companies involved in mergers and acquisitions,research on the financial effects of mergers and acquisitions activities on the company,is the scientific basis for corporate decision-making and stakeholders.With the Harvard analytical framework as a tool not only to analyze the financial data in mergers and acquisitions,but also use non-financial data to analyze the financial status of a company from a strategic perspective,analytical perspectives include strategic analysis,accounting analysis,financial analysis and prospects analysis.It can comprehensively diagnose the financial situation of the company and evaluate the effect of mergers and acquisitions on the company.This paper mainly uses the combination of normative research and case analysis to explore the motives of mergers and acquisitions of two companies.By combing the financial and non-financial data before and after the merger of BesTV and Oriental Pearl,the Harvard analysis framework is used to evaluate the effectiveness of M&A activities from four aspects:strategic analysis,accounting analysis,financial analysis and forecasting.The corresponding countermeasures are proposed for the problems existing in the process of M&A integration.Although the Oriental Pearl New Media has achieved certain synergistic effects after the merger,there are still certain problems.It mainly includes: the rapid change of management,which makes managers unable to fully and effectively understand the company's currentinternal and external environment and business development strategy;the cultural differences between the two parties are large,the cultural melting degree is poor;the core profit is unstable;At last;short-term performance indicators are good,but long-term performance indicators are not good.Based on the above conclusions,this paper combines the actual situation of the company,proposes that the M&A activities need to fully consider the market environment,avoid frequent changes in development strategies;avoid short-sighted behaviors,pursue long-term interests;strengthen the integration of corporate culture,avoid blind mergers and other aspects,and achieve for M&A enterprises.Synergies propose countermeasures.