Performance Analysis Of Traditional Enterprises’ Continuous Cross-border Mergers And Acquisitions

in the near future,China’s strategic economic constantly restructuring.Meanwhile it devote greater effor in pollution control.traditional industries like manufacturing are facing a severe external living environment.At the same time,chinese traditional enterprises still have shortcomings such as excessive reliance on factor inputs,low output efficiency,weak technological innovation capabilities and weak competitiveness.In order to solve the internal and external development difficulties,businesses in old industries have begun to seek new development opportunities.M&A,as an important means to help enterprises seek a whole new direction,are being used by more and more traditional enterprises.Many traditional companies have adopted the method of continuous cross-border M&A,for seek a whole new direction.Since continuous M&A mostly reflect the unique business planning of enterprises at particular time and place.the analysis of the impact of traditional enterprises’ continuous cross-border M&A is rewarding in micro-cases.By reason of the foregoing,The case of Century Huatong’s continuous cross-border M&A are used by this thesis for research.Century Huatong was engaged in the manufacture of auto parts originally,and then began continuous cross-border M&A in2014.Through cross-border M&A of two online game companies,T2 Entertainment and7 COOL,Century Huatong embarked on a diversified development path of auto parts manufacturing and online games.After that,Century Huatong expanded the online game industry through continuous cross-border M&A,and its online game industry revenue exceeded the auto parts manufacturing industry in 2018.this thesis draws the inspiration and suggestions by the performance research of company’s M&A,and also be helpful for future traditional industries like manufacturing’s serials M&A.in the first place,the setting of this thesis is described in all aspects,and combs the knowledge achievements of relevant scholars about serials M&A.At the same time,it also conclude the definition of Key Concepts,the intention and the way the impact is evaluated of serials M&A.Secondly,this thesis introduces the cases of Century Huatong’s continuous cross-border M&A.Here are the profiles of the principal acquirer and the acquirer and the development prospects of the industry and the continuous cross-border M&A the development situation of Century Huatong.Then,based on the theoretical basis of continuous M&A’s motivation,this thesis analyzes the continuous M&A’s motivation of Century Huatong.Then,this thesis use a combination of methods to analyze the impact of Century Huatong’s continuous cross-border M&A from multiple angles.Finally to from the conclusion and enlightenment of this thesis.Firstly,Century Huatong quickly cut into new industries from the outside through continuous cross-border M&A,explored a new way to improve profit acquisition,and further developed its online game industry through continuous cross-border M&A.Secondly,from the perspective of the economic consequences of continuous cross-border M&A,the initial market response of Century Huatong’s continuous crossborder M&A was positive.In the later stage of continuous cross-border M&A,the market response was not as expected.In terms of financial indicator analysis,Century Huatong has significantly improved its profit ability,Operating capacity and growth ability after continuous cross-border M&A.Although its debt solvency has been weakened to a certain extent,but it is still in a good state.Based on the analysis of the EVA method,Century Huatong’s EVA value was significantly turned for the better after continuous cross-border M&A.In terms of Tobin’s Q value,after continuous cross-border M&A,Century Huatong’s Tobin Q value has been significantly improved,indicating that continuous cross-border M&A have enhanced the company’s core competitiveness and sustainable development capabilities.Thirdly,from the analysis of possible risks after continuous cross-border M&A,Century Huatong’s continuous cross-border M&A have risks of impairment of goodwill and the risk of dual-main business development model transformation,which need to be vigilant.This thesis analyzes the case of Century Huatong and draws enlightenment that companies should formulate strategic plans based on their own development,steadily implement serial acquisitions,reorganize their integration capabilities after mergers,and focus on long-term development after mergers.