Research On Cross-industry Merger And Acquisition Performance Of Traditional Enterprises

Under the new normal of economic development,China has entered a new stage of supply-side structural reform,and traditional industries are in a new period of industrial structure adjustment and transformation and upgrading.Under the situation of promoting high-quality economic development,on the one hand,we must guide the transformation and upgrading of traditional industries,on the other hand,encourage the sustainable development of emerging industries,to promote the conversion of old and new kinetic energy.In recent years,the cross-industry mergers and acquisitions of traditional enterprises have shown explosive growth.The development of "Internet +" has made the combination of traditional and Internet industries a new bright spot in China’s mergers and acquisitions market.Against the backdrop of domestic macroeconomic impacts,policy orientation,and industry development trends,traditional companies expect to achieve transformation and upgrading through cross-industry mergers and acquisitions.Hubei Guochuang Hi-tech Material Co.,Ltd.,as one of the representatives of traditional companies,has implemented M & A activities with Shenzhen Yunfang Company,a real estate agency service company in the Internet industry.This article introduces the case of Guochuang High-tech’s merger and acquisition of Shenzhen Yunfang,including the company’s and its industry development profiles,the implementation of the merger process,and the development after merger,analyze the motivation of mergers and acquisitions.Conduct empirical analysis based on cases,and evaluate the short-term and long-term M & A performance of cross-industry M & A.Based on event research methods,analyze the short-term market response of M & A transaction events;based on synergies theory,selected a total of four years before and after the merger of the country’s record high operating conditions of long-term performance analysis of mergers and acquisitions.Through case empirical analysis,it is concluded that the market response of the M &A transaction event is good,the stock price has increased significantly,and the short-term performance is positive;from a long-term perspective,the impact on the company’s operating synergy,management synergy,and financial synergy is generally good.Although Guochuang Hi-tech’s M & A performance is generally good,there are still short-term debt repayment risks,long-term performance uncertainty,and diversified business risks in this merger and acquisition,and suggestions are made for the future development of Guochuang Hi-tech after M & A.This article summarizes the enlightenment of traditional enterprises’ cross-industry merger and acquisition transformation through case-based empirical research: first,accurately plan development strategies and focus on long-term performance goals;second,Fully understand the target industry and carefully choose the target of mergers and acquisitions;third,reasonably formulate merger and acquisition plans,to strengthen the management of M & A premium;fourth,pay attention to the internal integration of enterprises and realize the synergy effect of mergers and acquisitions.