Research On The Impact Of Bronte's Continuous Mergers And Acquisitions On Corporate Value

Obtaining funds through traditional equity financing and debt financing is more difficult for small and medium-sized technology companies in the growth stage.The NEEQ market maker system is constantly improving along with the reform of the domestic financial market mechanism.It is relatively simple to obtain financing through the NEEQ and the implementation process is efficient and quick.Therefore,it has become an effective way for small and medium-sized technology companies to solve the problem of corporate financing difficulties.The case object of this article,Bronte,makes full use of the opportunity of the New Third Board to obtain financing in the capital market,and then expands rapidly through continuous mergers and acquisitions to enhance the value of the company.Academia usually analyzes mergers and acquisitions as independent behaviors.The main points of analysis are mainly on strategic decisions.However,when mergers and acquisitions occur continuously,this method of analysis is no longer applicable because corporate management is usually not limited to a certain aspect.The considerations are based on strategic needs and changes in the external environment from the overall level of strategic considerations.Based on related theories such as value chain,corporate value creation,and transaction costs,this paper studies whether Bronte's continuous mergers and acquisitions will affect corporate value,and further explores how continuous mergers and acquisitions affect the value chain to increase corporate value.The research ideas of this article are as follows:Firstly,by combing through the continuous mergers and acquisitions process of Bronte,combined with the value chain theory to analyze how its continuous mergers and acquisitions affect the key capabilities in the value chain,and secondly,analyze its value by using Bronte's financial data before and after continuous mergers and acquisitions.In the end,the case object Bronte is compared with Huachangda,which is in the same industry and of similar scale,and explores why the company expands through continuous mergers and acquisitions.Why the former has increased corporate value while the latter has decreased corporate value.In-depth research How continuous mergers and acquisitions improve the overall value of the company by improving key capabilities in the value chain.The research conclusions of this paper are summarized in the following three points:(1)Bronte achieved upstream and downstream synergies through continuous mergers and acquisitions and improved key capabilities in the internal value chain to increase corporate value.At the same time,it compared and studied the horizontal diversification of Huachangda.The continuous mergers and acquisitions did not form a synergistic effect,resulting in the failure to improve the value of the enterprise;(2)The enterprises in the growth stage can adopt the method of continuous mergers and acquisitions to integrate resources and improve the marketing,manufacturing and technology research and development in the internal value chain.Ability to enhance the overall value of the company to achieve the strategic goal of rapid expansion;(3)In the process of continuous mergers and acquisitions,companies should fully grasp market opportunities and consider their own capabilities and industry environment,and formulate appropriate merger and acquisition strategies to improve the corporate value chain.Improve the core competitiveness of enterprises.