Study On The Financial Effect Of Business Restructuring After Rongxin M&A Monternet Technology

Under the background of the transformation and upgrading of traditional industries,many traditional enterprises have entered emerging industries through cross-border mergers and acquisitions.Although simple mergers and acquisitions can change the industrial structure of an enterprise,it cannot realize the efficient use of enterprise resources.In order to maximize the benefits of the company,business integration must be carried out in time after the merger,so that limited enterprise resources flow to high-yield places.Rongxin shares entered the mobile information service industry through the acquisition of Monternet Technology.In order to promote the transformation and upgrading of traditional industries and improve the utilization efficiency of enterprise resources,Rongxin shares began to reorganize their business after the merger.By divesting the traditional business with poor profitability and improving the industrial chain of emerging businesses,the mobile information service business has gradually replaced the traditional business into the core business of the enterprise.This article uses the method of case analysis.Firstly,it introduces the development status of the two businesses before the implementation of business restructuring,and explores the motivation of Rongxin's business restructuring.Next,the process of business restructuring will be introduced in stages,highlighting the changes in the industrial structure during the business restructuring process.Then,focus on the implementation effect of business restructuring: use the event research method to explore the stock price effect of business restructuring;explore the scale effect of business restructuring based on the changes in operating income,total assets and net profit;analyze the solvency,operational capacity,profitability Capabilities and development capabilities explore the impact of business restructuring on financial indicators;explore the value creation effects of business restructuring by calculating economic value added.Finally,it points out the problems in the process of business restructuring and puts forward reasonable suggestions.The research found that Rongxin shares continued to divest its poorly-producing power electronic equipment manufacturing business and expand the scale of its mobile information service business through business restructuring,so that limited enterprise resources are focused on core business.By making the core business bigger and stronger,the core business advantages of the company are highlighted,and the economies of scale are realized.While improving the business situation,the company has a broad space for development.In the process of industrial transformation and upgrading,it is not only necessary to achieve “1+1>2” through mergers and acquisitions,but also “4-1>3” through asset divestiture,and achieve efficient use of enterprise resources through efficient integration of enterprise resources.Relevant research is conducive to promoting the efficient implementation of business restructuring,and ultimately helping enterprises to achieve industrial transformation and upgrading.