Case Study On The Motivation And Financial Performance Of Merger Of Mango Excellent Media Co.,Ltd.

The report of the 19 th National Congress of the Communist Party of China pointed out that China's economy has changed from a stage of high-speed growth to a stage of high-quality development.Enterprises should adapt to this economic situation,optimize industrial structure and change growth momentum.For enterprises,M&A has become an important way to optimize the industrial structure.However,after M&A,there are more conclusions that the performance of enterprises is not ideal.In addition,Internet video enterprises frequently explode in A-share market.Therefore,the success of M&A of Mango Excellent Media is typical and worthy of in-depth study and exploration.Based on the existing research results and the situation of Mango Excellent Media,this paper first combs the situation of Mango Excellent Media M&A and the motivation of M&A,and lays the foundation for the subsequent financial analysis and points out the direction.And then in the financial performance analysis,through the event research method to analyze its market response to determine whether it realizes the increase of shareholder wealth,through the EVA Du Pont analysis system layer by layer analysis whether to improve financial performance to improve profitability,and through the synergistic effect analysis to further explore the source of performance improvement,for the subsequent M&A performance improvement reasons and inspiration to explore the direction of thinking.Finally,through the vertical comparison of Mango Excellent Media itself,according to the financial analysis results from corporate governance,financing and investment from three aspects of M&A to enhance financial performance of the same type of enterprises.The research conclusions of this paper are as follows:(1)the external motivation of Mango Excellent Media M&A is policy promotion,while the internal motivation is strategic transformation,improving profitability,combing industry and debt repayment pressure.(2)The merger and reorganization of Mango Excellent Media has improved the performance of enterprises and positive market reaction,which has investment value for investors,and this improvement benefits from the improvement of profitability,solvency and operation ability after the merger and reorganization,and comes from the synergy effect of operation and finance formed after the merger and reorganization.(3)Through further strengthening equity concentration and optimizing corporate governance,Mango Excellent Media laid the foundation for correct investment and financing decision-making;made good use of policies and introduced strategic investors to relax financing constraints,and finally expanded the source of income through the industrial chain,improved brand influence and layout new technology to enhance enterprise investment.The application value of this paper is as follows:(1)it is suggested that the merger and reorganization of enterprises should be judged according to the actual needs of enterprises.(2)It can provide a reference for the national enterprises which can't carry out the merger and reorganization in the following aspects,such as corporate governance after the merger and reorganization,and also provide a reference for how to improve the performance of the Internet video enterprises after the merger and reorganization.(3)this paper supports the theoretical research on the large shareholder support effect and reduce the principal-agent cost under the ownership concentration.