Motivation And Economic Consequences Of Cross Mergers And Acquisitions Of Traditional Enterprises

Under the background of increasing downward pressure,structural contradictions and prominent problems in the development of traditional enterprises,traditional enterprises need to be transformed urgently-There is a strong demand for transformation and upgrading of traditional enterprises,while cross-industry mergers and acquisitions are mostly to achieve diversified development and business transformation,thus becoming the preferred choice for transformation of traditional enterprises.With the rapid development of the Internet industry,choosing Internet companies as the target of mergers and acquisitions can better integrate Internet resources and realize the transformation and development of traditional enterprises,thus becoming the focus of cross-industry mergers and acquisitions of traditional enterprises.This paper chooses the typical case of the cross-industry merger and acquisition of Tianyou software and Qiku Internet game company by Century Huatong,a traditional automobile parts company,as the research case.Firstly,the paper introduces the research background,significance,motivation and economic consequences of M&A.Then it analyses the current situation of cross-industry M&A of traditional enterprises in China.Then it focuses on the analysis of the cross-industry M&A cases,introduces the company profiles and M&A process of both sides,analyses the integration situation after M&A,and then explores the motivation and economic consequences of this cross-industry M&A.The research finds that Century Huatong’s cross-industry M&A is more successful,realizes diversified development mode,reduces business risks,and the economic consequences after M&A are basically good,and the business performance of enterprises has been improved.However,after the merger and acquisition of Century Huatong,there exists the risk of impairment of goodwill and the risk of strategic transformation of the two main industries.It is necessary to continue to promote the common development of the two main industries and strengthen the management of operational risk and the risk of impairment of goodwill.Finally,this paper summarizes the conclusions of the case and puts forward some enlightening suggestions.Through the analysis of the cross-industry M&A cases of Century Huatong,this paper hopes to provide some reference for other traditional enterprises that hope to achieve transformation and upgrading through cross-industry M&A.The conclusion of this paper is that it is feasible for traditional enterprises to transform and upgrade through cross-industry mergers and acquisitions,carry out diversified development strategies,reduce operational risks and achieve good economic consequences.Cross-industry mergers and acquisitions of traditional enterprises are an important way to improve enterprise performance and promote enterprise development.However,because the economic consequences of cross-industry M&A of traditional enterprises are easily influenced by the industry development trend and national policies,we should make a long-term and sustained observation on the cross-industry M&A of traditional enterprises,pay attention to risk prevention while strengthening the development of enterprises,and maintain a cautious attitude.