Research On The Performance Of High-premium M&A Based On Performance Analysis Method

Nearly thirty years,The rapid development of my country’s market economy has also led to intensified competition among enterprises.Many traditional enterprises facing the shrinking state of the industry want to increase their competitiveness by expanding their scale.Corporate mergers and acquisitions can expand the scale of business while also promoting corporate upgrades.Therefore,more and more traditional companies want to achieve diversified strategic transformation through cross-industry and continuous mergers and acquisitions.Company Z,the research object of this article,has realized the strategic transformation from the traditional textile and apparel industry to the game industry.my country’s textile and apparel industry is in a state of serious homogeneity competition and oversupply.With the changes in the consumption structure of the Chinese people,the game industry,as an emerging industry,has huge market potential and has gradually become an important part of the cultural and entertainment industry in my country’s national economy.In addition,my country’s "Thirteenth Five-Year Plan" requires stronger support for the development of new industries such as games,and encourages the merger and reorganization of cultural enterprises.With such policy support,the market continues to heat up,and cultural and entertainment industry companies have become a popular choice for mergers and acquisitions.However,the game industry is a creative industry,"asset-light" operation,with high value-added characteristics,In the process of merger and acquisition,there will be a high premium,which will inevitably bring some financial or integration problems.Therefore,it is particularly important to study the control of high premium merger and acquisition.The research object of this article is Z company,and the analysis method adopted is the principal component analysis method.First,the introduction of M&A performance,high-premium M&A and related theories and evaluation methods are introduced;secondly,the motivations and risks of Z company’s high-premium M&A are analyzed;Operating capacity and growth capacity are calculated using principal component analysis to evaluate the mid-and long-term performance of mergers and acquisitions.Finally,through the study of the high-premium merger and acquisition process of company Z,combined with the measures and problems encountered by company Z in the face of risks,the merger and acquisition The preparation phase,implementation phase and integration phase of the company provide corresponding suggestions.