Analysis On Motivation And Performance Of Heavy Industry Enterprises’ Merger And Acquisition Of High-tech Enterprises

In recent years,with the rapid development of economy,in order to keep up with the competitors and occupy a larger market share in the rapidly developing market,many enterprises acquire new profit opportunities through mergers and acquisitions of other enterprises.The development of some traditional heavy industry enterprises has encountered bottlenecks,the homogenization of price war is squeezing the survival space of enterprises,and the low gross profit products also increase the business risk of enterprises.In this case,the traditional heavy industry enterprises need to carry out industrial transformation and upgrading in order to improve the added value of products and better adapt to the new situation.The new market is led by scientific and technological innovation.The rarity and high gross profit can make enterprises enhance their profitability and expand their business scale.The traditional manufacturing enterprise a’s merger and acquisition of RX company is a representative case of transformation and upgrading.The R&D ability,patents and channels of RX company can also make a company quickly enter the field of high-end CNC machine tool manufacturing,so as to improve the company’s overall business performance and scale,and enhance the competitiveness of the enterprise in the industry.Therefore,this paper selects the traditional manufacturing company a as the case company to analyze the motivation and performance of its acquisition of intelligent manufacturing company RX.Combined with literature research and case study,this paper first lists some domestic and foreign scholars’ research on M&A,and introduces the motivation of M&A and some theoretical basis of performance.Then it introduces the company profiles and industry background of company HD and company RX,as well as the process and content of M&A.Then it introduces and analyzes the three motivations of a company’s M&A,and evaluates the performance of a company in the years after M&A by using synergy effect analysis and EVA performance analysis.The result of performance evaluation is that in the long run,the growth ability,solvency,operation ability and profitability of the enterprise have been improved to a certain extent,and most of the financial indicators have been improved.Company HD has also integrated and optimized its R&D capability,financial management,upstream and downstream channels.The R&D capability of the enterprise has been improved,the market share has been expanded,the cost of management and operation has been greatly reduced,and the synergy effect has been effectively brought into play.EVA index also increased year by year after M&A.In a word,M&A brings new vitality to company HD,which is conducive to its sustainable developmentFinally,it summarizes some highlights and experience of a company’s merger and acquisition of RX company.First,the choice of merger and acquisition company should be in line with the development trend of the industry.The second is to make appropriate M&A plan to achieve the goal of M&A smoothly.The third is to give the acquired company a reasonable valuation and reduce the risk of goodwill impairment.The fourth is the rapid integration of resources with the acquired enterprises,so as to form a synergistic effect,which can provide some reference for other traditional manufacturing enterprises who want to merge and transform.