Research On The Premium M&A Performance Of IFLYTEK Acquiring Le Zhi Xing

With the innovation of science and technology and the introduction of new concept products,the artificial intelligence industry is now in the stage of rapid development.At the same time,artificial intelligence has been put on the national agenda strategy for many times in China,and it has received increasing attention due to the introduction of relevant policies and measures.However,the industry competition is still quite fierce,and it is an inevitable trend for ai enterprises to grow bigger and stronger through mergers and acquisitions.Therefore,in recent years,artificial intelligence enterprises in China have realized extensive expansion through mergers and acquisitions in the same industry,but their M&A premium rate is also getting higher and higher.Whether premium M&A can produce good performance has become the focus of attention of all parties.In this paper,iFLYTEK,a leading enterprise in the artificial intelligence industry,is selected as the research subject through case study to study the performance of premium M&A of artificial intelligence enterprises.This paper takes iFLYTEK's "breakthrough in field segmentation" as the entry point,and takes iFLYTEK's premium acquisition of Le Zhi Xing as an example to analyze the short-term market performance and medium-and long-term financial and non-financial performance of premium acquisition.In the case introduction,the whole process of iFLYTEK's acquisition of Le Zhi Xing was deeply explored.Firstly,it introduces the basic situation of the two parties.Then,it analyzes the internal and external reasons for the merger and acquisition.Then,it studies the valuation,premium and goodwill of mergers and acquisitions.High valuation brings high premium,while high premium generates high goodwill,and the generation of large goodwill is bound to increase the risk of goodwill impairment.Finally,it also analyzes the performance of the target party after the merger and acquisition.From the performance of the target party alone,the premium merger and acquisition is successful,because it has brought good performance contribution to the company for three consecutive years.However,the success of premium mergers and acquisitions ultimately depends on the effective integration of the two sides.In the performance analysis,the event analysis method is first used to analyze the short-term market performance of premium M&A,and then the financial index evaluation method and nonfinancial index evaluation method are respectively used to analyze the financial and nonfinancial performance changes before and after premium M&A.At the same time,based on the advantages and disadvantages of iFLYTEK in M&A and M&A performance,this paper summarizes three enlightenments and puts forward four Suggestions.The results show that: First,there are some deficiencies or hidden worries in the process of premium M&A,such as high premium brings high risk of goodwill impairment,unsatisfactory short-term market effect,weakened profitability,high input but it still takes some time for intellectual property to be converted into productivity.Second,premium M&A is not necessarily positively correlated with short-term market performance.Thirdly,there is an run-in period in the process of premium M&A integration.Fourth,combine artificial intelligence and education on the basis of platform construction,focus on the advantages of the main business,and achieve breakthroughs in the segmented fields.