| With the development of the Internet,the number of Chinese Internet users has grown rapidly.The Internet has penetrated into all walks of life,bringing huge changes to people’s lifestyles.M&A has become one of the important ways for Internet companies to cross-border operations.There are many risks in the M&A process,so it is not always successful,and the business logic in the Internet economy is different from the business logic in the traditional industrial economy.Therefore,the successful mergers and acquisitions of Internet companies that cross-border M&A traditional enterprises can inspire other Internet companies that are preparing to acquire traditional enterprises.This paper selects East Money M&A as a typical case of the combination of Internet industry and traditional industry mergers and acquisitions,sums up the motivation of M&A,and analyzes the short-term performance and medium and long-term performance of M&A cases.In the analysis of short-term performance,the event research method was used,and fifteen trading days before and after the event were selected.The calculated excess return rate was significantly positive,indicating that the merger brought investors with additional income,the securities market is optimistic about this merger and acquisition.In the evaluation of long-term performance,both financial indicators and non-financial indicators are analyzed.In the analysis of financial indicators,the projection pursuit model based on genetic algorithm is used to comprehensively evaluate and analyze the financial indicators before and after Oriental Fortune M&A.The comprehensive performance score of Orient Wealth has improved after the acquisition of Tongxin Securities.The profitability and growth ability of Oriental Wealth have been improved.The brokerage business ranking in the securities business has been continuously improved in the industry.Since Eastern Fortune acquired the shares of Tongxin Securities by means of equity swap,the solvency of the year of merger and acquisition has not been significantly adversely affected.However,the continued investment in the securities business after the merger has made theasset-liability ratio of Orient Assets gradually Ascension,solvency decline.The operational capability of Eastern Fortune has always been at the end of the industry,and its operational capacity has further declined after the acquisition of Tongxin Securities.In the analysis of non-financial indicators,according to the core competitiveness repeatedly mentioned in the annual report of the Eastern Fortune Annual Report,this paper is based on the three dimensions of user resource dimension,employee composition dimension and R&D and technology dimension.The indicators are analyzed and the results show that the core competitiveness represented by these three dimensions has been improved.Therefore,from a holistic perspective,the acquisition was successful.Through a comprehensive analysis of the performance of Eastern wealth mergers and acquisitions,the paper finally draws useful enlightenment for the merger and acquisition of Internet companies.It points out that Internet companies should first recognize their own user images before the merger,and find the correct M&A direction around the needs of target users.Leverage synergies between businesses.Secondly,we must choose the right time,according to the future development plan,select the appropriate target enterprise and appropriate payment methods,pay attention to the integration of various resources after the merger,and strengthen the management of the acquired enterprises.Making good use of the synergy between online and offline,improving corporate performance is conducive to the long-term development of the company.The existing M&A cases in the literature research are mostly horizontal mergers or acquisitions or vertical mergers and acquisitions in the industrial chain.However,there are few related literatures on the case of cross-border mergers and acquisitions between Internet companies and traditional enterprises,based on diversified operations in the industrial economy era.It is impossible to explain the cross-border mergers and acquisitions of Internet companies well,because diversification cannot create new technologies,new products and new business models.Diversification still enables enterprises to launch “Red Sea” with the original in-situ enterprises in the new entry field.Competition,while the cross-border operation of Internet companies relies on the integration of key links in the two value chains to form a new way ofvalue creation,thus implementing the “blue ocean strategy” in the original industry.Therefore,the theoretical analysis of the motives of Internet enterprise mergers and acquisitions is insufficient,thus leading to The evaluation of performance is also biased,so this article is committed to making up for the lack of research in this area. |
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