Research On Strategic Transformation And Continuous M&A Performance Of Enterprise

After the economy entered the new normal,rapid development become the past,and high-quality development become the leading role of Chinese society,The development of basic industries driven by factors and investment was limited,and industrial transformation and upgrading became the general trend.In the era of innovation-driven development,many enterprises have the opportunity to transform into strategic emerging industries and be better.M&A can usually quickly break through barriers to entry and expand business boundaries,so it has become a common way for enterprises to make strategic transformation.However,not all enterprises can always win in M&A transformation.It is important to summarize experience from successful enterprises in M&A transformation.Jiangsu Yoke Technology Co.,Ltd used to be the leader in the global organic phosphorus flame retardant industry.In the case of the downturn in the flame retardant market,it decided to adjust its business scope,merge and acquire a number of companies in succession to transform into the electronic material industry with higher product added value,and develop into a new material platform company with the electronic material business as the core and the flame retardant and LNG thermal insulation plate business as the auxiliary.Summarizing experience from the process of merger and acquisition transformation of Jiangsu Yoke Technology Co.,Ltd can provide reference for other enterprises facing strategic transformation,so that more enterprises can achieve long-term development in the complex social and economic situation.According to the background mentioned,this thesis uses case analysis to carry out research.First of all,it reviews the literature related to strategic transformation and continuous M&A,defines the main concepts,and states the relevant theories of strategic management,enterprise life cycle and synergy,which lays a theoretical foundation for the following research.Secondly,the analysis path of enterprise strategic transformation and continuous M&A performance is designed: based on the strategic environment,the reasons for strategic transformation are found,the relationship between strategic transformation and continuous M&A is clarified,the motivation of continuous M&A under the strategic transformation goal is excavated,the influencing factors of continuous M&A performance under the strategic transformation goal are explored,and the performance of continuous M&A under the strategic transformation goal is analyzed to build a framework for subsequent case analysis.Then,it introduces the basic situation of the case company Jiangsu Yoke Technology Co.,Ltd and the acquiree,and describes the progress and current situation of the continuous mergers and acquisitions.Finally,it analyzes the strategic transformation and continuous M&A activities of Jacques Technologies from the aspects of strategic environment and reasons for transformation,motivation of continuous M&A under the goal of strategic transformation,and performance of continuous M&A transformation.The main research conclusions are as follows: First,changes in the macro environment pose a threat to the single flame retardant business of Jiangsu Yoke Technology Co.,Ltd,but they bring opportunities to the company’s transformation to a strategic emerging industry.The decline in business performance and innovation culture have prompted Jiangsu Yoke Technology Co.,Ltd to think about strategic transformation.Changes in the external and internal environments of the enterprise together form the reasons that drive Jiangsu Yoke Technology Co.,Ltd to carry out strategic transformation.Second,the main motivation for Jiangsu Yoke Technology Co.,Ltd to adopt continuous M&A to achieve its strategic transformation goal is to quickly achieve cross industry transformation,find new profit growth points,obtain technical resources,break technical barriers,achieve resource sharing and obtain synergies.Third,the main factors that may affect the performance of consecutive mergers and acquisitions of Jacques Technologies include the life cycle and the way of mergers and acquisitions,payment methods,performance commitments,cultural differences between the two parties and Integration strategy.Fourth,from the perspective of shortterm performance,the market reaction of the first and last M&A was not good,but the M&A of Chengdu Kemeite and Jiangsu Xianke received support from investors;From the perspective of long-term performance,Jiangsu Yoke Technology Co.,Ltd has significant business synergy,and its profitability and R&D strength have improved.In terms of management synergy,Jiangsu Yoke Technology Co.,Ltd’s asset management level has decreased,while its cost,human resources and customer resource management level have improved.In terms of financial synergy,its solvency has increased,and its financial risk has decreased,but its tax saving effect is not obvious;From the perspective of changes in main business,electronic materials have gradually replaced flame retardants as the business with the most revenue.Jiangsu Yoke Technology Co.,Ltd has achieved a successful transformation through mergers and acquisitions.In the process of continuous M&A transformation of Jiangsu Yoke Technology Co.,Ltd,we can draw lessons from improving strategic foresight,timely M&A integration and promoting mutual support of domestic and foreign businesses.In the future,Jiangsu Yoke Technology Co.,Ltd needs to improve its asset management level,guard against goodwill risks and strengthen international trade management.After summing up the full text,the enlightenment obtained is: enterprises need to assess the situation,grasp the strategic opportunity period,and make timely strategic adjustments;M&A is an effective way for enterprises to transform across industries;Identifying the influencing factors of M&A performance will help to formulate a reasonable M&A plan;Enterprises need to attach importance to M&A integration and prevent risks.