Motivation And Performance Analysis Of Continuous M&A Of Yao Ji Technology

At present,the tide of digital economy is surging,and the world is in the transition period from the "information era" to the "digital economy era".The 20 th report of the Communist Party of China makes clear the development direction of the digital economy in the future,and the digital economy should be used to empower the traditional real economy.Traditional enterprises begin to pay attention to digital transformation and upgrading and explore new development space.China’s traditional enterprises have problems such as high output and low output,weak R&D and innovation capabilities,and are vulnerable to the impact of Internet enterprises in the era of digital economy development.However,traditional enterprises can conduct Internet transformation through mergers and acquisitions of Internet companies,thereby complying with the development requirements of the era of digital economy.Yaoji Technology,originally focusing on the production,processing and sales of playing cards,carried out the transformation and upgrading of the Internet in 2018,and began to embark on the diversified development path of the three main businesses of playing cards,online games and digital marketing through continuous mergers and acquisitions.This paper selects the motivation and performance of continuous M&A of Yaoji Technology as a research case for in-depth study.Starting from the case study of the continuous M&A motivation of Yaoji Technology,various methods are used to analyze the performance of the continuous M&A,and performance evaluation is conducted to verify whether the motivation for implementing the continuous M&A of Yaoji Technology is reasonable.First of all,analyze the research background and significance of the paper,sort out and summarize the relevant literature of domestic and foreign continuous mergers and acquisitions,and sort out the relevant theoretical basis.Secondly,this paper introduces the case of continuous M&A of Yaoji Technology,including the industry background,the brief introduction of both parties and the process of continuous M&A of Yaoji Technology.Then,based on the theoretical basis of the continuous M&A motivation,this paper analyzes the motivation and mechanism of the continuous M&A of Yaoji Technology,and then comprehensively evaluates the company’s continuous M&A performance through event research,financial index analysis,entropy weight factor analysis and non-financial index analysis,including short-term market response,financial performance and non-financial performance evaluation.Finally,through the analysis of the case of the continuous acquisition of Yaoji Technology,the corresponding conclusions and enlightenment are drawn.This paper draws the following conclusions through research: First,from the perspective of the motivation of continuous M&A,the continuous M&A of Yaoji Technology in the early stage is mainly to achieve business structure adjustment,create new profit growth points through the layout of the game industry,and then lay out the digital marketing field through the continuous M&A to play a synergy effect.Second,based on the performance analysis of continuous mergers and acquisitions,investors are more optimistic about the mergers and acquisitions of Internet game companies,and more wait-and-see about the development of digital marketing business through the merger and acquisition of Luming Technology.In the analysis of financial indicators,after continuous mergers and acquisitions,the company’s profitability,operation and growth ability have improved significantly,and its solvency has declined.Then,the entropy weight factor analysis is used to calculate the comprehensive evaluation value of the company’s continuous mergers and acquisitions,and its comprehensive strength is significantly improved.In addition,continuous M&A has also significantly improved the number and structure of employees,R&D innovation and social responsibility of the company.Thirdly,from the perspective of existing risks,continuous mergers and acquisitions have brought operational risks such as divesting the playing card business,huge goodwill impairment risks,and declining debt paying ability to Yaoji Technology.