A Study On The Motivation And Performance Of THVOW’s Cross-Industry M&A Of CSEEC

In the context of the new economic normal and national development of supply-side reform,the relatively backward industrial structure and the relatively single business model have forced Chinese companies to transform and upgrade.Generally speaking,cross-industry M&A is the way in which companies can quickly transform and upgrade.By absorbing companies with good development prospects,the company itself can improve its original industrial structure in the short term through the integration of resources after the M&A,thus achieving sustainable development of the company.The case of THVOW’s M&A of CSEEC is a case of a Chinese manufacturing company trying to transform and upgrade itself through cross-industry M&A.Therefore,this paper decides to take this case as the object of this research.Based on this cross-industry M&A case,this paper analyzes the motivation and performance of manufacturing firms’ choice to initiate cross-industry M&A through a combination of literature analysis,case study analysis,and quantitative and qualitative research methods.First,this paper compiles the theoretical foundations and research methods related to M&A.Second,the paper presents the main circumstances of the M&A case.Then,the paper analyzes the M&A motivations in the case in the context of the company’s development.After that,the paper then immediately analyzes the market performance,financial performance,EVA analysis and non-financial performance of the merged company performance respectively.From the analysis,we can see that after the completion of the merger,the company obtained a good market effect in the capital market;from the overall financial analysis,the merger event improved the financial performance of the company;from the EVA analysis,although the capital utilization efficiency of the company had a good improvement in the first two years after the merger,the evaluation index turned from positive to negative in the third year after the merger,showing that the company’s sustainable ability for capital utilization efficiency was slightly insufficient;from the non-financial analysis,we can see that the company’s capital utilization efficiency was slightly insufficient.From the analysis of non-financial performance,the non-financial indicators of the company have good performance in all aspects after the M&A.Finally,based on the analysis of the entire M&A case,this paper concludes that this M&A case is a relatively successful cross-industry M&A case.In addition,this paper has drawn some insights from the characteristics of this successful M&A case,and we hope that the research results of this paper will be an inspiration for companies that also wish to conduct cross-industry M&A.