Research On Value Creation In YH Continuous Mergers And Acquisitions

In recent years,the development of the civil explosives industry has gradually accelerated,the three "five-year plan" have continuously promoted the reorganization and integration of the civil explosives industry,enhanced the industry concentration,adjusted and optimized the industrial structure,and achieved high-quality development.With the support of policies,YH company has actively responded to the call of national policies and taken the lead in mergers and acquisitions,initiating more than ten mergers and acquisitions since its listing,expanding its competitive advantages through integration and reorganization,and gradually standing firm in its leading position in the industry.Based on this,this paper takes YH company as a case study and examines its series of successive M&A value creation processes with a view to shedding light on the development of the civil explosives industry.Based on the resource orchestration perspective,this paper examines the successive M&A process of YH company from 2010-2021,and analyzes the process of resource-to-value transformation of YH in the successive M&A process.In this article,I have reviewed a total of 11 M&A activities of YH company,first,successive M&As are divided into two phases according to the company’s planning and strategic objectives,then analyze the enterprise’s value creation process from three aspects:building resource portfolio,integrating resources,and leveraging resources respectively,analysis of the linkages between the various mergers and acquisitions.Finally,this paper uses qualitative and quantitative analysis methods to evaluate and analyze the effect of continuous M&A value creation using event study method,financial indicator analysis and nonfinancial indicator analysis.The results of the study show that successive M&As are phased according to the firm’s development and strategic goals,and that there is a correlation between M&As.In the process of successive mergers and acquisitions,enterprises need to carry out reasonable resource orchestration,that is,to build a resource portfolio,integrate resources,use resources to leverage value,and seek to maximize the value of resources.With the successive mergers and acquisitions of enterprises,the resource restructuring strategy will change from rich restructuring to pioneering restructuring,and industry chain prying and platform prying are mainly the sources of enterprise value creation.In terms of the value creation effect of successive M&A,successive M&A brings positive short-term market effects and has a positive effect on the long-term financial performance of the firm,creating value for the firm.The case study found that companies need to orchestrate their resources wisely to pry out more value when making successive acquisitions.