Performance Analysis Of Century Huatong’s M&A Of Shengyue Network

Since reforming and opening up,the social economy has been growing rapidly.To survive and develop in this competitive market,enterprises prefer to achieve their goal of extensional development by acquiring other enterprises.This thesis selects the case of Century Huatong’s acquisition of Shengyue Network as the research object,analyzes the market performance and financial performance of the acquisition,and discusses the transformation of traditional enterprises’ management strategy.Thesis briefly introduces the background and through M&A between the two sides at the first place,and analyses the synergistic effect and tobin’s Q of the market performance of M&A,and calculates the financial index to study the present situation and problems of enterprise’s financial performance.Last but not least,to figure out the changes during the M&A,thesis uses the index of EVA to have a research on the financial performance of the M&A.Through comprehensive analysis,the thesis thinks that the M&A has expanded the market power and increased the market value for the enterprise,which has caused certain pressure to the enterprise’s short-term debt repayment and operation,but in the long run,it has also enhanced the enterprise’s various operating capabilities.However,from the perspective of sustainable operation,M&A brings talent reserve and resources to the enterprise.If the enterprise could give full play to the synergies and economies of scale between various departments in the integration period,it would create more value for shareholders.Through the analysis of this case,the thesis also draws some enlightenment,enterprises must be cautious in choosing target companies to reduce the risk of M&A fundamentally.In addition,it’s necessary to predict and guard against the risks that may appear in each stage of M&A,so as to minimize the losses brought by the failure or poor performance of M&A.By studying the case of Century Huatong’s acquisition of Shengyue Network,thesis makes a comprehensive study on the process of cross-border M&A in traditional industries to realize diversified management,and puts forward Suggestions for before and after the M&A of enterprise risk and countermeasure,provides certain theoretical basis for those traditional enterprise that want to transform.